Published: December 05 2023
The investment made by U.S. company BorgWarner in Hungary is contributing to the growth of the electric mobility industry and job opportunities in Budapest. The Hungarian government's cooperation with market players has helped support this investment, which will focus on manufacturing products for hybrid and electric vehicles.
The Importance of the Investment
BorgWarner, already a major employer in Hungary with over 1,000 employees, will invest HUF 25 billion (EUR 65.7 million) in a development project in Oroszlány. The company's investment will be supported by the state with HUF 5 billion (EUR 13 million). This investment is crucial in the context of the European Union's decision to transition to electric vehicles in order to achieve carbon neutrality targets.
The Growing Electric Mobility Industry
The automotive industry's shift towards electric vehicles is seen as a new economic era in Europe. Hungary, with its favorable investment conditions, is positioned as one of the key players in this transition. The production value of the sector reached a record high of HUF 12,000 billion (EUR 31.5 billion) last year and has continued to grow by 18% in the first nine months of this year.
U.S. Investment and Hungarian Economic Growth
U.S. investment plays a significant role in sustaining Hungary's economic growth. The presence of U.S. companies in Hungary has helped make it the second largest investor community in the country. Fourteen U.S. companies have signed strategic cooperation agreements with the government, leading to a record high bilateral trade turnover last year. Trade has further expanded by 11% in the first nine months of this year, indicating continued growth in the coming years.
BorgWarner's investment in Hungary highlights the increasing importance of the electric mobility industry and its potential for job creation. The collaboration between the Hungarian government and market players is essential in attracting further investments and establishing Hungary as a hub for the European green industry.
Questions & Answers
What is the new investment by BorgWarner in Hungary? BorgWarner, a U.S. company, is investing HUF 25 billion (EUR 65.7 million) in Hungary to manufacture products suitable for hybrid and electric vehicles. The investment will take place in Oroszlány, which is located in the Central Transdanubia region.
How many people does BorgWarner currently employ in Hungary? BorgWarner already employs over 1,000 people in Hungary.
What is the role of the Hungarian government in supporting BorgWarner's investment? The Hungarian government is supporting BorgWarner's investment with HUF 5 billion (EUR 13 million).
Why is Hungary considered one of the winners in the electric car transition? Hungary is considered one of the winners in the electric car transition due to the cooperation between the government and market players. The Minister of Foreign Affairs and Trade, Péter Szijjártó, mentioned that political decisions have been made in the European Union regarding the electrification of the automotive industry, which is necessary to achieve carbon neutrality targets. Hungary's focus on attracting investments and establishing centers and factories for the new European green industry is contributing to its position as a winner in these changes.
What percentage of total emissions does the automotive industry account for? The automotive industry accounts for 20% of total emissions.
What was the production value of the Hungarian automotive sector last year? The production value of the Hungarian automotive sector reached a record of HUF 12,000 billion (EUR 31.5 billion) last year.
How much did U.S. investments contribute to Hungarian economic growth? U.S. investments play an important role in sustaining Hungarian economic growth. The companies from the U.S. are the second-largest investor community in Hungary, and 14 of them have signed strategic cooperation agreements with the government. Bilateral trade turnover between Hungary and the U.S. has been increasing, reaching a record high last year.