Published: December 18 2023
German automotive supplier ZF has announced a significant investment of HUF 24 billion (EUR 62.6 million) in Hungary. This investment will lead to the creation of over 300 new jobs in Kecskemét and Debrecen. ZF Chassis Modules Hungary Kft., a German-owned company, will manufacture shock absorbers and axles for electric cars to be produced at BMW and Mercedes plants in these locations from 2025.
ZF's Investment in Hungary
ZF, a German automotive supplier, is investing HUF 24 billion in Hungary, creating over 300 new jobs. The company's subsidiary, ZF Chassis Modules Hungary Kft., will manufacture components for electric cars at BMW's Debrecen and Mercedes' Kecskemét plants.
Importance of German Investments in Hungary
Germany is Hungary's most important trading and investment partner. In 2022, Germany accounted for 23% of Hungary's foreign trade with a volume of EUR 67.7 billion. Furthermore, German investments in Hungary reached EUR 18.2 billion in 2021, comprising 20% of the country's total foreign direct investment. The Hungarian Investment Promotion Agency has already approved 187 German investment projects worth EUR 9.5 billion, resulting in the creation of over 30,000 jobs.
Hungary's Success in the Automotive Industry
Hungary's automotive industry has played a significant role in the country's economic success. Despite recent crises, Hungary broke records for investment, exports, and employment last year. The country is leading the way in the electric transition within the automotive sector, highlighting its commitment to technological revolutions.
Ensuring Economic Security
Hungary's government emphasizes the importance of continuous investment to address challenges effectively. Minister of Foreign Affairs and Trade, Péter Szijjártó, stressed that economic security is a priority for Hungary. The government has taken steps to ensure a stable energy supply, including full natural gas storage facilities, the construction of a new nuclear power plant, and interconnected networks with neighboring countries.
Overall, ZF's investment and the presence of German companies in Hungary contribute significantly to the country's economy, enabling job creation and driving growth in the automotive sector.
Questions & Answers
What is the investment made by ZF in Hungary? ZF, a German automotive supplier, has made a HUF 24 billion investment in Hungary.
Where will ZF create new jobs in Hungary? ZF will create more than 300 new jobs in Kecskemét and Debrecen, two cities in Hungary.
What will ZF manufacture in Hungary? ZF will manufacture shock absorbers and front and rear axles for electric cars to be produced at BMW’s Debrecen and Mercedes’ Kecskemét plants.
When will the production of electric cars begin in Hungary? The production of electric cars is expected to begin in 2025.
Which German car manufacturers have factories in Hungary? BMW has a factory in Debrecen, and Mercedes has a factory in Kecskemét.
How many countries is ZF present in? ZF is present in 32 countries around the world.
What is the importance of the automotive industry in Hungary? The automotive industry plays a significant role in the success of the Hungarian economy, especially in the electric transition.
What was the trade volume between Germany and Hungary in 2022? Germany was Hungary's most important trading partner in 2022, with a trade volume of EUR 67.7 billion.
How much foreign direct investment did Germany make in Hungary in 2021? Germany made EUR 18.2 billion in foreign direct investment (FDI) in Hungary in 2021.
How many German investment projects have been approved in Hungary since 2014? Between 2014 and the first half of 2023, 187 German investment projects worth EUR 9.5 billion have been approved in Hungary.
How many new jobs have been created by German investments in Hungary? German investments in Hungary have created more than 30,000 new jobs.
