The automotive industry in Hungary

Engine of growth

Europe's assembly line

A new hub for the global automotive industry
02 03
Central and Eastern Europe has become an important centre for the world's automotive industry. With 2.9 million passenger cars produced last year, the area is becoming an important production base for the EU market. In 2007, production in CEE countries grew by 27 per cent, five times higher than in Western Europe. Central Europe's role is particularly significant in the production of small, economical cars where cost minimisation is essential. Rapid growth in local vehicle production is also reflected by an expanding supplier segment that accounts for more than half of the industry in many CEE countries. Rapid development of the automotive industry in Central and Eastern Europe would not be possible without substantial foreign investment, which has now exceeded EUR 20 billion. In recent years, the CEE region has attracted all the leading automakers of Europe, the US and Asia. The automotive sector is one of Hungary's core industries and contributes 20 per cent of total exports. In 2007, vehicle sales outside Hungary were worth EUR 8.2 billion and engines accounted for EUR 5.3 billion. Over 600 companies employing a total of 110,000 people are active in the sector. Of these enterprises, 240 operate according to the ISO and/or TS 16949 quality management standards. The export ratio of Hungarianmade cars is 94 per cent, a figure that stands at 88 per cent for engine and component production. The number of first- and second-tier equipment manufacturers is continually rising. Since the early 1990s, several foreign car manufacturers, such as Suzuki, Audi and General Motors, as well as 14 of the top 20 Tier 1 suppliers, have set up production facilities in Hungary. Thanks to Hungary's EU membership, investors settling here find themselves on the south-eastern borders of a market of 493 million people. As a result, many multinational companies have also relocated their manufacturing, service operations, European headquarters and R&D centres to Hungary, translating to nearly EUR 67 billion in foreign direct investment to date. More than 45 per cent of total FDI in Hungary has been directed towards the manufacturing industry, with the automotive and its supplier industries leading the way. Hungarians who have changed the automotive industry
Few people know that the first four-wheel spring carriage was crafted in Kcs, a small village in Komrom County, at the turn of the 14th century. Unlike the usual carts of that time, this carriage was suspended on vertical straps and later on springs. Kocsi, the Hungarian word for the carriage derived from the name of the village, has spread all over the world and been adopted by many languages, including English (coach), German (Kutsche) and French (coche). Dezs Korda designed an electric automobile in the 1860s when he worked with the Paris-based Societ de Fives-Lille as chief designer, and later as the company's managing director. He is also renowned as the inventor of the rotating condenser and received the Lgion d'Honneur, the French Order of Honour for his scientific achievements.

Automotive industry in Hungary

Dont Bnki (1859-1922) and Jnos Csonka (1852-1939) were the joint pioneers of engine manufacturing in Hungary. They applied for a patent for the petrol engine in 1888 and the carburettor in 1893. In 1894, Bnki patented his high-pressure combustion engine and upgraded it with injected water cooling. Csonka constructed the first Hungarian gas motor in 1879 with tools and equipment he devised himself. In 1882, he built a blended fuel gas and petroleum motor. Csonka has been credited with a host of original inventions, including various measuring devices, a motor tricycle and, in 1905, a transport vehicle for the Post Office. The latter marked the birth of the Hungarian car manufacturing industry. A journalist, office clerk, sculptor, and painter in Budapest, Jzsef Lszl Br (1899-1985) is best known for inventing the ball-point pen. However, when he found his newly-bought Bugatti's clutch mechanism too unweildy, he tinkered around for a year, before making and patenting his own automatic gearbox. General Motors offered him half a percent of the price of each unit sold and a monthly $200 advance for five years. The advance secured him an easy life for a while, but the licence fee was never paid, as the American company suppressed the patent and sank it to the bottom of a filing cabinet. Jen Fejes (1877-1952), largely forgotten today, was the first man in the world to submit patents for manufacturing automobile parts by cold-forming, pressing, torch- and spotwelding. From 1911, Fejes, a constructor at the Hungarian General Engineering Co., replaced all cast and heavy pressed

The gearbox
Why Hungary?

iron parts with cold-formed parts and steel plates. Cold forming allowed the use of steel plates of vastly reduced thickness, slashing the dead-weight of vehicles designed by Fejes by 30 to 35 per cent. One of the most talented technical forebears of the American automotive industry, Jzsef Galamb (18811955) began work at Ford in December 1905. The Model T designed by Galamb was ready by 1908 and 19 thousand cars were sold the following year. Its most important part was the planetary gearbox, one of Galamb's most brilliant inventions. Jzsef Galamb also designed the world-famous Fordson tractor and the ignition plug. Bla Barnyi (1907-1997), the father of passive safety in automobiles, was employed by Austria-Fiat, Steyr and Adler (predecessor of Audi) before joining Daimler-Benz in 1939. Heading the pre-development department of DaimlerBenz from 1939 to 1972, he developed the concept of the crumple zone, the non-deformable passenger cell, the collapsible steering column and many other safety features of Mercedes-Benz automobiles. He is also credited with having conceived the basic design for the Volkswagen Beetle in 1925, five years before Ferdinand Porsche claimed to have completed his version. Barnyi was nominated for the award of Car Engineer of the Century in 1999 and inducted into the Detroit Automotive Hall of Fame in 1994. Dr. Ferenc Anisits (1938- ) was one of the founders of the BMW Diesel Development Centre in Steyr, Austria. Anisits developed a new four-cylinder engine which debuted in 1998 at the 24-hour race in Nurburgring. The 3-Series BMW outperformed its petrol-driven rivals, making it the first victory for a Diesel-powered car. At BMW, Anisits developed the V8, the world's first direct injection Diesel engine. This and a six-cylinder version were awarded the title of International Engine of the Year in 1999 and 2000. Anisits has developed three generations of Diesel engines at BMW. Ferenc Pavlics (1928- ) developed NASA's Moon Rover, the first vehicle in history to travel on extraterrestrial terrain during the Apollo 15 expedition of 1971. Pavlics's engineering background included six years of machine design in Hungary. After the 1956 uprising, he left the country and was involved in research and development at General Motors from 1960. Twenty-seven years of service for GM included engineering and management positions in vehicle mobility research, advanced vehicle design, lunar surface vehicle projects, and electric propulsion systems. Pavlics designed and supervised the manufacture of mobility test equipment, instrumentation and experimental vehicles and, as Project Engineer for several NASA contracts, also designed manned and robotic surface vehicles. The rover, known as Newcomer, was improved by NASA under Pavlics's direction, and landed on Mars in 1997 with the Trailfinder space probe.

Whether you are a producer looking for a cost-effective manufacturing base, competitive component and part suppliers, or locations for logistics and R&D centres, Hungary has plenty to offer. Hungary is at the heart of Central Europe, a region characterised by dynamic economic growth driven by high industrial output, excellent export potential and increasing domestic demand. Hungary lies along the Eastern border of the EU and is within the Schengen zone. The country's strategic position, highly developed logistics and utilities infrastructure and traditional role as a trading post makes it increasingly important as a regional distribution centre and a natural service hub for the CEE region. Four trans-European motorways run through Hungary, more than in any of the neighbouring countries. Most countries in the Balkans can only be reached through Hungary. As a member of the European Union, Hungary has fully harmonised its legal system, adopting European safety and quality regulations related to automotive manufacturing. Hungary also compares very favourably when it comes to data security and enforcement of intellectual property rights. Highly skilled, creative and flexible human capital at competitive cost: companies can expect a 30-50% cost savings compared to Western Europe and the US. The average gross wage in Hungary is just EUR 747 per month while labour productivity is among the highest in the CEE region. The Hungarian labour force also rates highly in international comparisons for innovation and creativity, due to the country's renowned standards of schooling and tertiary education. Fourteen of the world's top 20 Tier 1 suppliers, including Robert Bosch, ThyssenKrupp, Denso, Michelin, Valeo, Bridgestone, Magna Steyr, Borg Warner, Visteon, Delphi, Continental, Lear, Siemens and Sumitomo are already present in Hungary. They have also surrounded themselves with clusters of home-grown small and medium-sized manufacturers and service suppliers. Renault-Nissan, General Motors and Porsche have chosen Hungary as a location for part centres supplying not only the Central and Eastern European markets but also Ukraine, Russia and the Balkans. Business processes have been simplified considerably in recent years. In addition, foreign companies willing to settle in Hungary are welcomed with comprehensive trade development services and supportive government policy. Hungary has a globally recognised academic and university infrastructure. Increasingly, automotive-related R&D activity is carried out in top universities and research institutions, while leading global manufacturers, including Audi, Bosch, Knorr-Bremse, Magna-Steyr and ThyssenKrupp, have established R&D centres in Hungary. Hungary is the regional leader in the production of petrol engines and the fourth largest exporter in Europe.

Driving innovation
R&D in the heart of Europe
04 05
Globalisation has encouraged multinational car companies to outsource an ever-increasing proportion of product development to local small and medium-sized enterprises. This is possible only when these suppliers are able to harness their innovative power while effectively integrating their R&D activity into that of their international partners. Government programmes can help Hungarian SMEs catch up to industry leaders, partner effectively with multinational firms and integrate their activities into international supply chains and R&D systems. This can be done partly through the government's supplier incentive programme, and partly through a plan to extend the network of Automotive Competence Centres to complement Regional University Knowledge Centres currently operating as R&D bases. The goal is to spur innovation and R&D through efficient collaboration between multinational companies, supplier SMEs, academic research institutes and other relevant organisations. This policy aligns well with the EU's development plans for the present budget period, and with the aims of the 7th Research Framework Programme (FP7). In the interests of encouraging innovation and nurturing R&D talent among SMEs, the Association of the Hungarian Automotive Industry has established a strategy for Automotive Competence Centres. The Automotive Competence Centres: Create a knowledge network for national and international R&D collaboration Hone companies' aptitude for innovation by promoting knowledge and technology transfer Act as an incubator to SMEs by offering an expanding range of business services to meet specific needs Engage in collective marketing activities on behalf of members and with other institutions Serve as a centre for the collection, processing and presentation of member information via the Internet and related technologies.

Key statistics
Production: EUR 15.9 billion, Export: EUR 14.3 billion Export ratio: 90% Skilled workers' average gross wage: 444 EUR/month Share of foreign capital: 75% Distribution of companies by ownership: Domestic: 52%, Foreign: 23%, Joint venture: 25% Share of total national exports by Audi, Suzuki and GM Powertrain combined: 11% Number of automotive manufacturing firms (OEM, Tier 1Tier 2): 630 Number of automotive manufacturing firms with audited quality-assurance systems: 240 Number of employees: 110,000 Proportion of employees involved in main-unit manufacturing: 12% Proportion of employees involved in part-unit manufacturing: 88%

Automotive industry in Hungary

Automotive research
Audi Gyr: engine development AVL Budapest: engine and powertrain development Bosch Miskolc: electronic hand-tools designing Bosch Budapest: electronic developments Continental Teves Veszprm : development of electronics instruments for cars Denso Szkesfehrvr: fuel supplying system development DHS Draexlmaier rd: vehicle compartment designing EDAG Gyr: vehicle subunit development GE Lightings Budapest: car lighting Knorr-Bremse Budapest: electronic brake-system development Magna-Steyr Gyr: engineering centre Continental Temic Budapest: car electronics development Semcon Budapest: automotive design, informatics ThyssenKrupp Budapest: electronic steering development Visteon Szkesfehrvr: vehicle part and subunit development WET Pilisszentivn: electronic subunit development

Up to speed
Education in the automotive sector

Technical universities and institutions

Total number of students taking technical courses: 55,000
Miskolc Nyregyhza Sopron Gyr Veszprm Gdll Budapest Debrecen

Szkesfehrvr Dunajvros Kecskemt

Education in all areas of engineering is built on strong foundations: Hungary boasts great scientific traditions and experience in production and planning, excellent primary and secondary education (including vocational high schools with focused technical curricula), and a superb network of technical colleges and universities renowned for training highly specialised engineers. The automotive industry provides work for 110,000 people in Hungary today, of which 3,500 are university- or college-educated engineers. World-class training and education of engineers in five major cities Nearly 20 per cent of working engineers are engaged in product development, while the rest are active in technical development, production, quality assurance and sales Hungary has nearly 20,000 students in vocational education
Source: Ministry of Education

Pcs

Baja

Technical universities: Budapest Technical University, Zrnyi Mikls National Defence University Budapest, Szchenyi Istvn University Gyr, University of Miskolc, Pannonia University Veszprm, University of Debrecen, Szent Istvn University Gdl, University of Pcs, University of West Hungary, Sopron Technical institutions: Budapest Technical College, Gbor Dnes College Budapest, College of Dunajvros, Kecskemt College, Etvs Jzsef College, Baja, College of Nyregyhza

Over 53,000 Hungarians are enrolled in science courses at university level (in 2007, 17,712 in IT, 31,029 in engineering and 4,546 in manufacturing and processing).

Number of students in vocational education in 2006/2007

Motor Mechanics and metalwork Electronics vehicles, ships, aircraft Electricity and energy

Western Transdanubia Central Transdanubia Southern Transdanubia Central Hungary Northern Hungary Northern Great-Plain Southern Great-Plain Total

882 1198 782 892 1240 1307 1336 7637

477 342 300 1107 544 585 408 3763

786 579 5943 1990 731 1068 841 6589

278 367 291 624 440 332 456 2788

Catalysts for investment

Government incentives and subsidies
06 07
The Hungarian Investment and Trade Development Agency (ITD Hungary) provides a one-stop service to support investments establishing new manufacturing facilities worth at least EUR 10 million. As part of a tailor-made incentive package, ITD Hungary undertakes all-inclusive management of projects granted direct cash subsidies, and provides VIP treatment and comprehensive information about other subsidies available for high-value investment projects. I. Tenders co-financed by the European Union. This is a non-refundable cash subsidy fully approved by the EU and issued by the Hungarian Government. (Available tenders can be found on the ITD Hungary website.) II. In cases where no EU co-financed subsidy is available, the Hungarian Government offers a special incentive package for projects with eligible costs exceeding EUR 10 million. The Special Incentive Package may consist of the following elements:

Maximum regional intensity rates

1. Cash subsidy assessed by individual Government decision

Non-refundable subsidy, defined as a percentage of eligible costs, based on the Government's decision At least 50 (or, in preferred regions, 25) new jobs must be created Decision factors: wage related costs, location of the project, number of jobs created, ratio of graduates, training costs On receipt of all necessary project data, ITD Hungary will send an official incentive offer within 30 days Cash subsidy + tax allowance + any other state subsidy (excluding training subsidy) combined cannot exceed the maximum regional subsidy 30% intensity rate for the given location. These are between 25% and 50%, depending on the state of development of the region.

Automotive industry in Hungary

2. Development tax allowance

Minimum EUR 12 million investment with 150 new jobs in developed regions and EUR 4 million with 75 new jobs in less developed regions 80% of corporate income tax (currently at 16%) can be deducted for a period of up to 10 years

50%

3. Training subsidy
From 50% to 90% of total training costs, depending on the type of training and location of the investment

4. Job creation subsidy

Granted to projects located in less and least developed micro-regions and settlements, which create at least 500 jobs in less developed areas, or at least 200 in least developed micro-regions; the ratio of registered unemployed within the newly-recruited staff should exceed 50% and 30%, respectively. Subsidy per investment: HUF 260 million (EUR 1.04 million) if headcount increases by at least 500 HUF 160 million (EUR 640 thousand) if headcount increases by at least 300 HUF 80 million (EUR 320 thousand) if headcount increases by at least 200

Leading the way

Automotive success

Audi Facts & figures (2007) 1.913 million engines 56,982 cars, Audi TT, Audi TTRoadster and Audi A3 Cabriolet Turnover EUR 5,870 million Workforce 5,845 people Total investments of over EUR 3,300 million Hungary's largest exporter World's third largest engine manufacturing plant

AUDI
We are confident that with our innovative technology, progressive design and exemplary environmental protection, our success will remain the same in the future. // Audi's corporate culture The management of the AUDI Hungaria Motor Ltd. is proud of the company having become one of the greatest investors in Hungary. Our output level amounts over 1.91 million engines a year, and owing to our engine development centre, machine tool factory as well as production designing and product construction we are the determining force in the Hungarian and European automobile industry. The good working culture, efficiency and flexibility of Hungarian workers have made rapid growth possible. Within 15 years, Audi in Gyr has become the world's third largest engine manufacturer and logistics had to keep pace with this expansion. // Thomas Faustmann, Managing Director, AUDI Hungria Motor Ltd.

of state subsidies

AUDI Hungaria Motor Ltd. manufactures and assembles engines, cylinder heads and cars. As a 100% affiliated company of the German corporation AUDI AG, Europe's largest facility for 4-, 6- and 8-cylinder-engines was established in 1993. AUDI is Hungary's top exporter and delivers engines to carmakers Volkswagen, Skoda and Seat. Since 1998 the company has also performed assembly work for the Audi TT and TT Roadster models. These products are manufactured according to the highest possible technical standards and are the fruits of cutting-edge development work performed all over the world. Audi Hungria Motor Ltd. is going to manufacture the 10-cylinder, 560 HP engine for the luxurious sports car Lamborghini Gallardo.
50%

50% 40% 25% 30%

SUZUKI
50%
I'm convinced that Suzuki made the right decision in choosing Hungary for its European general headquarters: the move has proved to be hugely beneficial for us, as sales figures have been demonstrating for the last 15 years. The strategic rationale for this decision was to achieve maximum synergy by combining two great assets: the reliable and economical product range designed by Japanese engineers to meet continuously evolving market demands, and the creativity, excellent problem-solving abilities and discipline of the Hungarian work force. The plan's success is evident in the unsurpassed quality of the Suzuki automobiles and auto parts manufactured here in Hungary. // Kazuhisa Toda, former General Director, Magyar Suzuki Corporation Suzuki would continue to develop safe, environmentally compatible vehicles and continue contributing to Hungary's economic development. // Hiroshi Tsuda, President and COO, Suzuki Motor Corporation

Suzuki Facts & figures (2007) 233,000 cars (Swift 3d and 5d, SX4; Ignis; Wagon R+) Planned for 2008: 300,000 units Turnover EUR 2.2 billion Workforce 6,200 people Total investment in excess of EUR 1,270 million

Magyar Suzuki Corporation has started production of the Splash world strategic model in Esztergom on 8th February, 2008. Suzuki plans to produce 60,000 units per annum. The Splash is the first model in the second phase of Suzuki's world strategy; it was designed to combine sportiness with the family-friendliness that has long been a hallmark of Suzuki vehicles, and it combines CO2 emissions of just 120 g/km with fuel consumption of just 5 L/100 km.

08 09
GENERAL MOTORS
General Motors Powertrain Hungary Ltd. was founded as a subsidiary of General Motors Powertrain Europe in Szentgotthrd in 1991. The company is the sole manufacturer of all Ecotec Family 1 gasoline engines (1.6-1.8 litre) and an exclusive producer of Allison automatic transmission for trucks and buses outside America.
A creative and flexible workforce is one of the strengths that helps General Motors Powertrain Hungary to successfully meet the challenges facing today's rapidly changing automotive industry. // Rudolf Hamp, former General Director, General Motors Powertrain Hungary Ltd.

General Motors Powertrain Facts & figures (2007) 434,617 engines 495,780 cylinder heads 19,281 Allison transmissions Workforce 667 people Total investment reached EUR 700 million by 2006

MODINE
Modine Manufacturing Company is a global leader in the design and development of heating and cooling solutions with revenues of approximately USD1.6 billion in fiscal 2007. The corporation is investing USD 12 million to build a state-of-the-art facility in Gyngys Industrial Park, further extending Modine's global manufacturing footprint. The site was chosen to leverage operating synergies with Modine's Mezkvesd site, and the decision was based on Hungary's superior local logistics and infrastructure, and favourable wage levels.

Automotive industry in Hungary

Modine wins programmes to supply approx. USD 125 million per year in EPA 2010 and Tier 4 engine cooling solutions over five years.
We are very excited to be building a second facility in North East Hungary, leveraging our manufacturing scale and creating multiple synergies to drive incremental business wins by giving us a more competitive cost position. This will enable us to continue serving the growing needs of the commercial vehicle, construction and agricultural machinery and automotive markets cost competitively. // David B. Rayburn, Modine's President and Chief Executive Officer

ROBERT BOSCH
Bosch has been present in Hungary for 109 years. The company is the second largest foreign employer in Hungary with 13 local subsidiaries and a total headcount of more than 7,000. Bosch in Hungary is increasing its efforts to adapt the domestic technical higher education system to the needs of the market by supporting numerous training programmes in Budapest, Hatvan and Miskolc. Bosch's Budapest Development Centre recruited the 300th engineer developer. The development centre recruits 100 new engineers per annum, where the highest quality of professional challenges is offered to colleagues. In 2008, a further 100 engineer developers are expected to be employed.
Bosch is continuously expanding its development activities, which is not only apparent in the growth of its workforce, but also in its increasingly varied engineering activities. Bosch is fully committed in every respect to environmental friendly and safe solutions. // Henk Becker, Director, Bosch Development Centre, Budapest

FDI stock in EUR millions in transport equipment manufacturing in Hungary by volume and as a percentage
6000 5000 4000 3000 2000 1000 0

F.SEGURA
F.Segura designs, manufactures and assembles automotive components and metal components for the biggest names in the automotive sector, such as FORD, VW, SEAT, AUDI and VOLVO. In 2007, the foundationstone for the new F.Segura Hungria Ltd. factory was laid in Szolnok. The EUR 20 million investments will be completed on 100.000 square meters in 2008 and will create 150 new jobs by the end of 2010.

ZF
In the past decade ZF's Eger site has become the development and manufacturing headquarters for the company's transmission systems for light commercial vehicles. The activities of other global ZF companies dealing with the same product group are directed from here.
Source: Central Statistical Office

1998

1999

2000

2001

2002

2003

2004

2005

12% 10% 8% 6% 4% 2% 0

2006

40 per cent of the components of transmissions manufactured by the company come from Hungarian suppliers. We also cooperate with Hungarian universities as they provide us excellent highly qualified engineers and technical professionals. // Ulrich Diller, General Director, ZF Hungria Ltd.

1998

1999

2000

2001

2002

2003

2004

2005

2006

KNORR-BREMSE
Knorr-Bremse will spend over EUR 11 million on R&D in Hungary in 2008.
This enlargement has huge significance in the history of Knorr-Bremse in Hungary, since it results in considerable increase of the number of employees, a new building and enlargement of laboratories. The R&D activity is of prime importance not only in the Group's global development organisation but also in the Hungarian technical, higher education, research and development sectors. // Istvn Lepsnyi, CEO Knorr-Bremse Ltd.

CEE transport equipment industry operating margins in comparison to Western Europe

Gross operating surplus/turnover (%)
14 12 10 8 6 4 2 0
Hungary Bulgaria Slovenia Czech Republic Romania Slovakia Poland EU-25

Source: UniCredit

HI-LEX
Japanese headquartered Hi-Lex is the world's largest control cable supplier with 29 operating units in 13 countries. The Hi-Lex Corporation chose Rtsg as the location for its second European production unit.
The establishment of Hi-Lex Hungary Kft. is a key milestone in the international history of the Hi-Lex Corporation and its continuing growth in Europe. Hi-Lex Hungary Kft. will play a pivotal role in the further successful growth and expansion of the international Hi-Lex Corporation in Europe. // Mike Lewis, European Director of HI-LEX Corporation/

Success by association
Automotive organisations
10 11
The Association of the Hungarian Automotive Industry (MGSZ) was founded in 1998 with the participation of ten automotive companies. Today, the Association has 27 members and represents the international interests of Hungarian producers in the Association of European Motor Vehicle Manufacturers (ACEA) and the International Organisation of Motor Vehicle Manufacturers (OICA). Association of Hungarian Vehicle Component Manufacturers (MAJOSZ) was established in 1993 by 22 founding members. It currently has more than 290 members, of which 80 are supporting members. The Association's goal is to assist its members in climbing as high up the supplier hierarchy as possible, and to help them advance from simpler to more sophisticated products, from contract manufacturing to product development projects. The Association of Hungarian Vehicle Component Manufacturers is an official member of the European Association of Automotive Suppliers (CLEPA). The Pannon Automotive Cluster (PANAC) was established in 2000 and now boasts 96 members. The organisation's mission is to facilitate national and international networking by providing opportunities for communication and partnerships, offering project sponsorship and promoting trust and willingness to cooperate among members. It also assists in company development, including surveys of supplier capacity, company benchmarking, organisation of specific automotive teaching/training programmes, and professional forums, programmes and technology exchanges.

Motorway network in Hungary

Ideal logistics hub in Europe

Slovakia Poland Western Europe ARA ports Slovakia Hamburg Czech Republic Bremerhaven Ukraine CIS

Automotive industry in Hungary

10 1 4 7

Constanta
9

Koper, Triest

Constanta

Logistics centers Airport with public, international, commercial permanent border crossing Airport with public, international, commercial temporary border crossing Airport development opportunities Ports Railway connection Container terminal

The sum of the parts

Hungary's network of automotive manufacturers

Northern Hungary

Central Hungary Central Transdanubia Western Transdanubia

Northern Great-Plain

Southern Great-Plain Southern Transdanubia

Western Transdanubia Arcelor Audi Autoliv B.O.S. BPW Rba Dana Dekorsy Delphi Packard Edag EMT Erbslh Euro Exedy Euro-Elzett Eybl Federal Mogul GM Powertrain Gyri Plast Hirschler Kravtex Magna Steyr Nemak Rba Rekard Produkt Rudolph Logistik Schaeffler AG Sempeform Veritas Visiocorp Vogel und Noot

Central Transdanubia AFL Ajkai Elektronika Albert Weber Alcoa Asahi Glass Bakony Benteler Borg Warner Bourns Bridgestone Continental Teves Denso Diamond Electric Euro Exedy Gedia Gestamp Hammerstein Hankook ITW Siewer Karsai Plast Kirchoff Le Blier Lear Magyarmet Michels Musashi Plasticor Plastimat Rba SCI Sanmina SEWS Souftec Suzuki Toyo Seat U-Shin Valeo Videoton Visteon Wescast

Southern Transdanubia BHG CabTec Ratipur Central Hungary ArvinMeritor AVL Cascade Clarion Continental Catalyst Continental Temic ContiTech Draexlmaier EMT Excel Csepel FESTO GE Lighting Hokushin Ibiden Lear MGM Michelin Mono-Ipolyfabric NABI PEM Schwarzmller Siemens VDO Tauril ThyssenKrupp Toyo Seat Vogel-Sitze W.E.T. Automotive Webasto Zollner

Northern Hungary Ada-Cast Akzo-Nobel Coating ARRK Bosch Delphi-Calsonic Delta-Tech Exir Firth Rixson Ganz Foundry Gibbs Hi-Lex Knaus-Tabbert Kovcs Lear Leoni Mitsuba Modine Prec-Cast Remy Saia-Burgess Salgglas Shinwa Stanley Electric Starter Battery Technoplast ZF Hungria

Northern Great-Plain Caroflex Carrier Transicold Eagle Ottawa Eismann EMCON Technologies/ ArvinMeritor Euroszol F.Segura Hajdu Aut Hbner Isringhausen Le Blier Michelin Nief Phoenix Schaeffler AG Southern Great-Plain Continental Phoenix Csaba Metal Eckerle Emika Hirschmann Kaloplasztik Knorr-Bremse Kunplast Linamar ThyssenKrupp

THE HUNGARIAN INVESTMENT AND TRADE DEVELOPMENT AGENCY

Your co-driver: ITD Hungary

ITD Hungary is the Hungarian government's Investment and Trade Development Agency, established by the Ministry of Economy and Transport to promote inward investment and bilateral trade. With representative offices in the eight regional centres of Hungary and a foreign network operating under Hungary's diplomatic services at 55 locations in 43 countries, ITD Hungary is a single point of contact for executives exploring investment and trade opportunities in Hungary. The Agency provides foreign investors with high-quality support for key decision-making processes and a wealth of supplementary services, including:

Project preparation
In-depth, tailored information on the local economy and business climate, corporate taxation and the legal environment, as well as sector specific overviews Site visits, meetings with local, regional and government bodies and introductions to local suppliers, service providers and experts Information on available incentives

Implementation
Site selection assistance, coordination of licensing procedures Finalisation of incentives agreements Assistance with recruitment and visa application VIP treatment for expatriate employees

After care
Intermediary role for future developments between government bodies and foreign companies operating in Hungary Support and generation of reinvestments Through a diverse set of marketing tools and support programmes, ITD Hungary offers substantial logistical, financial and professional assistance to both start-up and established Hungarian exporters. A large proportion of the Agency's trade promotion activities are carried out by its Customer Relations Centre, operating under the Business Development Directorate. ITD Hungary also co-ordinates the Hungarian activities of the Enterprise Europe Network, supported by the European Commission. The network offers support and advice to businesses across Europe and helps them make the most of opportunities in the European Union. ITD Hungary develops and distributes printed and electronic business guides, trade directories and information booklets in a variety of languages. The Agency arranges business programmes for individual visitors and delegations, organises conferences, exhibitions, product showcases and other business events.

For more information please contact:

ITD Hungary Headquarters, H-1061 Budapest, Andrssy t 12. Phone: +36 1 472 8150, Fax: +36 1 472 8140 E-mail: investment@itd.hu, trade@itd.hu www.itd.hu Mr. Csaba Kilin, Executive Investment Director, Investment Promotion Mr. Gbor Grenczer, Project Team Leader, Investment Promotion Mrs. Szilvia Werly, Senior Advisor,Trade Development