The in Hungary Engine of growth Europe's assembly line A new hub for the global automotive industry

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Central and Eastern Europe has become an important centre for Hungarians who have changed the automotive industry the world's automotive industry. With 3.3 million passenger produced last year, the area is becoming an important Few people know that the first four-wheel spring carriage was crafted in Kócs, a small village in Komárom County, at the turn production base for the EU market. In 2008, while Western of the 14th century. Unlike the usual carts of that time, this European motor vehicle production fell by 9.1%, production carriage was suspended on vertical straps and later on springs. in the CEE countries grew by 7.5%. Hungary could boast of “Kocsi”, the Hungarian word for the carriage derived from the name of the village, has spread all over the world and been an 18.5% growth, the second highest in Europe. Central adopted by many languages, including English (coach), German Europe's role is particularly significant in the production of small, (Kutsche) and French (coche). economical cars where cost minimisation is essential. Rapid Dezsô Korda designed an electric automobile in the 1860s growth in local vehicle production is also reflected by an when he worked with the Paris-based Societé de Fives-Lille as expanding supplier segment that accounts for more than half of chief designer, and later as the company's managing director. He is also renowned as the inventor of the rotating condenser the industry in many CEE countries. Rapid development of the and received the Légion d'Honneur, the French Order of Honour automotive industry in Central and Eastern Europe would not be for his scientific achievements. 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 2008, vehicle sales outside Hungary were worth EUR 8.3 billion and engines accounted for EUR 5.3 billion. Over 600 companies employing a total of 100,000 people are active in the sector. Of these enterprises, 240 operate according to the ISO and/or TS 16949 Donát Bánki(1859-1922) and János Csonka (1852-1939) quality management standards. The export ratio of Hungarian- were the joint pioneers of engine manufacturing in Hungary. They applied for a patent for the petrol engine in 1888 and the made cars is 94 per cent, a figure that stands at 88 per cent for carburettor in 1893. In 1894, Bánki patented his high-pressure engine and component production. 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 The number of first- and second-tier equipment manufacturers blended fuel gas and petroleum motor. Csonka has been is continually rising. Since the early 1990s, several foreign credited with a host of original inventions, including various measuring devices, a motor tricycle and, in 1905, a transport manufacturers, such as , and General Motors, as vehicle for the Post Office. The latter marked the birth of the well as 14 of the top 20 Tier 1 suppliers, have set up production Hungarian car manufacturing industry. facilities in Hungary. A journalist, office clerk, sculptor, and painter in Budapest, József László Bíró (1899-1985) is best known for inventing the Thanks to Hungary's EU membership, investors settling here ball-point pen. However, when he found his newly-bought find themselves on the south-eastern borders of a market of 493 Bugatti's clutch mechanism too unweildy, he tinkered around for a year, before making and patenting his own “automatic gear- million people. As a result, many multinational companies have box”. General Motors offered him half a percent of the price of also relocated their manufacturing, service operations, European 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 headquarters and R&D centres to Hungary, translating to nearly was never paid, as the American company suppressed the EUR 60 billion in foreign direct investment to date. patent and sank it to the bottom of a filing cabinet.

Jenô Fejes (1877-1952), largely forgotten today, was the first More than 36 per cent of total FDI in Hungary has been directed man in the world to submit patents for manufacturing towards the manufacturing industry, with the automotive and automobile parts by cold-forming, pressing, torch- and spot- its supplier industries leading the way. welding. From 1911, Fejes, a constructor at the Hungarian General Engineering Co., replaced all cast and heavy pressed

Automotive industry in Hungary The gearbox Why Hungary?

iron parts with cold-formed parts and steel plates. Cold forming allowed the use of steel plates of vastly reduced Whether you are a producer looking for a cost-effective manufacturing base, thickness, slashing the dead-weight of vehicles designed competitive component and part suppliers, or locations for logistics and R&D by Fejes by 30 to 35 per cent. centres, Hungary has plenty to offer. One of the most talented technical forebears of the • Hungary is at the heart of Central Europe, a region characterised by dynamic American automotive industry,József Galamb (1881- economic growth driven by high industrial output, excellent export potential and 1955) began work at Ford in December 1905. The Model T designed by Galamb was ready by 1908 and 19 thousand increasing domestic demand. cars were sold the following year. Its most important part • Hungary lies along the Eastern border of the EU and is within the Schengen zone. was the planetary gearbox, one of Galamb's most brilliant inventions. József Galamb also designed the world-famous The country's strategic position, highly developed logistics and utilities Fordson tractor and the ignition plug. 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 Béla Barényi (1907-1997), the “father of passive safety in automobiles”, was employed by Austria-, Steyr and region. Adler (predecessor of Audi) before joining Daimler-Benz in • Four trans-European motorways run through Hungary, more than in any of the 1939. Heading the pre-development department of Daimler- Benz from 1939 to 1972, he developed the concept of the neighbouring countries. Most countries in the Balkans can only be reached crumple zone, the non-deformable passenger cell, the through Hungary. collapsible steering column and many other safety features • As a member of the European Union, Hungary has fully harmonised its legal of Mercedes-Benz automobiles. He is also credited with having conceived the basic design for the system, adopting European safety and quality regulations related to automotive Beetle in 1925, five years before Ferdinand Porsche manufacturing. Hungary also compares very favourably when it comes to data claimed to have completed his version. Barényi was security and enforcement of intellectual property rights. nominated for the award of Car Engineer of the Century in 1999 and inducted into the Detroit Automotive Hall of Fame • Highly skilled, creative and flexible human capital at competitive cost: in 1994. companies can expect a 30–50% cost savings compared to Western Europe and

Dr. Ferenc Anisits (1938- ) was one of the founders of the the US. The average gross wage in Hungary is just EUR 740 per month while BMW Diesel Development Centre in Steyr, Austria. Anisits labour productivity is among the highest in the CEE region. The Hungarian labour developed a new four-cylinder engine which debuted in force also rates highly in international comparisons for innovation and creativity, 1998 at the 24-hour race in Nurburgring. The 3-Series BMW outperformed its petrol-driven rivals, making it the due to the country's renowned standards of schooling and tertiary education. first victory for a Diesel-powered car. At BMW, Anisits • Fourteen of the world's top 20 Tier 1 suppliers, including Robert Bosch, developed the “V8”, the world's first direct injection Diesel ThyssenKrupp, Denso, Michelin, Valeo, Bridgestone, Magna Steyr, Borg Warner, engine. This and a six-cylinder version were awarded the title of “International Engine of the Year” in 1999 and 2000. Visteon, Delphi, Continental, Lear, Siemens and Sumitomo are already present in Anisits has developed three generations of Diesel engines Hungary. They have also surrounded themselves with clusters of home-grown at BMW. small and medium-sized manufacturers and service suppliers. Ferenc Pavlics (1928- ) developed NASA's Moon Rover, • -Nissan, General Motors, Porsche and DAF/PACCAR have chosen the first vehicle in history to travel on extraterrestrial terrain Hungary as a location for part centres supplying not only the Central and Eastern during the Apollo 15 expedition of 1971. Pavlics's engineering background included six years of machine European markets but also Ukraine, Russia and the Balkans. design in Hungary. After the 1956 uprising, he left the • Business processes have been simplified considerably in recent years. In country and was involved in research and development at addition, foreign companies willing to settle in Hungary are welcomed with General Motors from 1960. Twenty-seven years of service for GM included engineering and management positions in comprehensive trade development services and supportive government policy. vehicle mobility research, advanced vehicle design, lunar • Hungary has a globally recognised academic and university infrastructure. surface vehicle projects, and electric propulsion systems. Pavlics designed and supervised the manufacture of Increasingly, automotive-related R&D activity is carried out in top universities mobility test equipment, instrumentation and experimental and research institutions, while leading global manufacturers, including Audi, vehicles and, as Project Engineer for several NASA Bosch, Knorr-Bremse, Magna-Steyr and ThyssenKrupp, have established R&D contracts, also designed manned and robotic surface vehicles. The rover, known as Newcomer, was improved by centres in Hungary. NASA under Pavlics's direction, and landed on Mars in • Hungary is the regional leader in the production of petrol engines and the fourth 1997 with the Trailfinder space probe. largest exporter in Europe. Driving innovation R&D in the heart of Europe

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Globalisation has encouraged multinational car companies Key statistics to outsource an ever-increasing proportion of product development to local small and medium-sized enterprises. • Production: EUR 16.7 billion, This is possible only when these suppliers are able to • Export: EUR 15.0 billion • Export ratio: 90% harness their innovative power while effectively integrating • Skilled workers' average gross wage: their R&D activity into that of their international partners. 384 EUR/month • Share of foreign capital: 75% Government programmes can help Hungarian SMEs catch • Distribution of companies by ownership: up to industry leaders, partner effectively with Domestic:54%, Foreign: 25%, Joint venture: 21% multinational firms and integrate their activities into • Share of total national exports by Audi, Suzuki and international supply chains and R&D systems. This can be GM Powertrain combined: 11% done partly through the government's supplier incentive • Number of automotive manufacturing firms programme, and partly through a plan to extend the (OEM, Tier 1–Tier 2): 620 network of Automotive Competence Centres to • Number of automotive manufacturing firms with complement Regional University Knowledge Centres audited quality-assurance systems: 240 currently operating as R&D bases. • Number of employees: 100,000 • Proportion of employees involved in main-unit manufacturing: 12% The goal is to spur innovation and R&D through efficient • Proportion of employees involved in part-unit collaboration between multinational companies, supplier manufacturing: 88% 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). Automotive research

In the interests of encouraging innovation and nurturing • Audi – Gyôr: engine development R&D talent among SMEs, the Association of the Hungarian • AVL – Budapest: engine and powertrain development Automotive Industry has established a strategy for • Bosch – Miskolc: electronic hand-tools designing • Bosch – Budapest: electronic developments Automotive Competence Centres. • Continental Teves – Veszprém: development of electronics instruments for cars The Automotive Competence Centres: • Denso – Székesfehérvár: fuel supplying system • Create a knowledge network for national and international development • DHS Draexlmaier – Érd: vehicle compartment designing R&D collaboration • EDAG – Gyôr: vehicle subunit development • Hone companies' aptitude for innovation by promoting • GE Lightings – Budapest: car lighting knowledge and technology transfer • Knorr-Bremse – Budapest: electronic brake-system • Act as an incubator to SMEs by offering an expanding development • Magna-Steyr – Gyôr: engineering centre range of business services to meet specific needs • Continental Temic – Budapest: car electronics • Engage in collective marketing activities on behalf of development members and with other institutions • Semcon – Budapest: automotive design, informatics • Serve as a centre for the collection, processing and • ThyssenKrupp – Budapest: electronic steering development presentation of member information via the Internet and • Visteon – Székesfehérvár: vehicle part and subunit related technologies. development

Automotive industry in Hungary • WET – Pilisszentiván: electronic subunit development Up to speed Education in the automotive sector

Technical universities and institutions Education in all areas of engineering is built on strong foundations: Hungary boasts great scientific traditions and experience in production and planning, Total number of students taking technical excellent primary and secondary education (including vocational high courses: 57,000 schools with focused technical curricula), and a superb network of technical Miskolc colleges and universities renowned for training highly specialised engineers. Nyíregyháza Gyôr The automotive industry provides work for 100,000 people in Hungary today, Sopron Gödöllô Debrecen Veszprém Budapest of which 3,500 are university- or college-educated engineers. Székesfehérvár Dunaújváros Kecskemét • World-class training and education of engineers in five major cities Pécs Baja

Technical universities: Budapest Technical • Nearly 20 per cent of working engineers are engaged in product University, Zrínyi Miklós National Defence development, while the rest are active in technical development, production, University – Budapest, Széchenyi István quality assurance and sales University – Gyôr, University of Miskolc, Pannonia University – Veszprém, University of Debrecen, Szent István University – Gödölô, University of • Hungary has nearly 22,500 students in vocational education Pécs, University of West Hungary, Sopron • Over 52,000 Hungarians are enrolled in science courses at university level (in Technical institutions: Budapest Technical College, Gábor Dénes College – Budapest, College of Education 2008, 13,235 in IT, 34,622 in engineering and 3,851 in manufacturing and of Dunaújváros, Kecskemét College, Eötvös Ministry processing). József College, Baja, College of Nyíregyháza

Source:

Number of students in vocational education in 2007/2008

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

Western Transdanubia 1019 371 854 302 Central Transdanubia 1472 260 644 451 Southern Transdanubia 1054 283 583 266 Central Hungary 932 613 1979 691 Northern Hungary 1695 434 789 496 Northern Great-Plain 1450 513 1155 503 Southern Great-Plain 1685 517 1003 507 Total 9307 2991 7007 3216 Catalysts for investment Government incentives and subsidies

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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 Cash subsidy + tax Government's decision allowance + any other • At least 50 (or, in preferred regions, 25) new jobs must be created state subsidy (excluding • Decision factors: wage related costs, location of the project, number of jobs training subsidy) created, ratio of graduates, training costs combined cannot • On receipt of all necessary project data, ITD Hungary will send an official incentive offer within 30 days exceed the maximum regional subsidy 30% 2. Development tax allowance intensity rate for the • Minimum HUF 3 billion investment with 150 new jobs in developed regions and given location. These 50% HUF 1 billion with 75 new jobs in less developed regions are between 25% and • 80% of corporate income tax (currently at 16%) can be deducted for a period of 50%, depending on the up to 10 years state of development of the region. 3. Training subsidy • From 25% 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

Automotive industry in Hungary • HUF 80 million (EUR 320 thousand) if headcount increases by at least 200 Leading the way Automotive success

Audi – Facts & figures (2008) DAIMLER • 1.9 million engines Daimler started to invest EUR 800 million to manufacture 100 thousand Class A and B • 60,359 (+6%) cars, Audi TT, compact Mercedes cars yearly in the Central Hungarian city of Kecskemét. This will be the Audi TT-Roadster and Audi A3 company's first plant in Eastern Europe. The investment will create 2,500 jobs and production Cabriolet is to start in 2012. The Hungarian Government supports the investment of Daimler with a • Turnover EUR 5,617 million package of measures giving the project a clear prioritization. Daimler considered sites in • Workforce 5,879 people Romania, Poland and Serbia, in addition to Hungary, but Kecskemet offered Daimler the best • Total investments of over EUR 3,600 million conditions in terms of infrastructure, logistics, work force and wages. • Hungary's largest exporter • World's third largest engine “By choosing this region, your country, the city of Kecskemét and the people, they are becoming part of manufacturing plant the history of Mercedes-Benz. And we believe in the performance of the location and the employees. Because, no matter where a Mercedes comes from, it must always meet the highest quality standards.” // Rainer Schmückle, Chief Operating Officer, Mercedes Benz Cars Division, Daimler AG

of state subsidies AUDI Audi manufactures high-end vehicles equipped with powerful, state-of-the-art engines supplied by Audi Hungaria. When Audi AG was looking for a new production site to manufacture a new series of engines in 1992, the northern Hungarian town of Gyõr was selected from 180 potential venues. AUDI HUNGARIA MOTOR Kft. was established with founding capital of EUR 1 million in 1993 as a wholly owned subsidiary of AUDI AG and is 50% now one of the country's key industrial players and largest exporters. The Hungarian company has produced more than 15 million engines in the past 15 years and its four-, five-, six-, eight- 25% , ten- and twelve-cylinder engines are used not only in Audi branded vehicles but also in a 40% 30% 50% variety of Volkswagen, Seat and Skoda models. Audi Hungaria is also the only company in the world assembling Audi TT sports cars and Audi A3 Cabriolets as part of a cooperative manufacturing process with Audi's Ingolstadt plant. 50% % “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 Gyôr has become the world's third largest engine manufacturer and logistics had to keep pace with this expansion.” // Thomas Faustmann Managing Director, AUDI Hungária Motor Ltd. Suzuki – Facts & figures (2008) SUZUKI • 281,681 (+21,3%) cars (Swift, “I'm convinced that Suzuki made the right decision in choosing Hungary for its European general SX4, Ignis; Splash) headquarters: the move has proved to be hugely beneficial for us, as sales figures have been • Turnover EUR 2.4 billion demonstrating for the last 15 years. The strategic rationale for this decision was to achieve maximum • Workforce 4,300 people synergy by combining two great assets: the reliable and economical product range designed by • Total investment in excess of 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 EUR 1.3 billion in the unsurpassed quality of the Suzuki automobiles and auto parts manufactured here in Hungary.” // Kazuhisa Toda, former General Director, Magyar Suzuki Corporation 08 09

The company was established by its major shareholder Suzuki Motor Corporation in General Motors Powertrain 1991. The kick-off model, Swift rolled off the production line in 1992, followed in 2000 – Facts & figures (2008) by Wagon R+, Ignis in 2003, the new Swift in 2005, SX4 in 2006 and Splash in 2008. • 392,378 engines By now over a million and a half Suzuki vehicles – assembled in the Esztergom factory • 605,643 cylinder heads – are used on domestic and European roads. Since the factory was set up, the • 20,437 Allison transmissions company has spent more than HUF 280 billion on development. In addition to 4,300 • Workforce 640 people jobs at the Suzuki factory, the company provides jobs for thousands of people in • Total investment reached Hungary through its circle of suppliers. Apart from the emphasis it places on quality, EUR 700 million by 2008 Magyar Suzuki aspires to an environmentally conscious mode of operation. The technology in use at the Esztergom factory is in line with ISO 14 001 environmental and ISO 9001 quality assurance standards. All models currently assembled at Esztergom are built with engines complying with Euro 4 environmental standards. MSC also acquired the “Authorized Economic Operator” – AEO certification, an internationally acknowledged certificate, which proves the excellence of a company within international trading.

Despite of the severe conditions in the car industry, Magyar Suzuki Corporation has increased its production by 21.28% compared to last year’s figures.

GENERAL MOTORS General Motors Powertrain Hungary Ltd. was founded as a subsidiary of General Motors Powertrain Europe in Szentgotthárd 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.

ROBERT BOSCH Bosch has been present in Hungary for 110 years. The company is the second largest foreign employer in Hungary with 12 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. Last year the company has spent EUR 36 million on R&D. By now already 430 engineers work in the Bosch Budapest Development Centre.

"The Bosch Group has been committed to supporting and motivating a new generation of engineers for many years. This long-term strategy has paid off as demand for highly trained, multi-lingual engineers appears to have increased in the current financial crisis." // Dr. Jan-Peter

Automotive industry in Hungary Stadler, Director, Bosch Development Centre, Budapest FDI stock in EUR millions in transport F.SEGURA equipment manufacturing in Hungary Spanish die-manufacturing and stamping company Grupo F.Segura has by volume and as a percentage chosen the city of Szolnok to establish a new facility to design and manufacture metal components for the automotive industry for its customers 6000 FORD, VW, SEAT, AUDI and VOLVO. Initially the factory will be 11,000 sqm 5000 large, over a total area of 10 hectares. The overall cost of investment will 4000 reach EUR 11 millionand it will create 150 new jobs. 3000 From this privileged position in the centre of Europe and bordering on seven 2000 countries, F.Segura Hungaria KFT wants to obtain a major presence in the 1000 current and future European context. With this strategic decision F.Segura 0 establishes itself in a multi-customer environment where privileged logistics

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2006 2007 conditions and additional benefits take profit of the new emergence markets in the region. 12%

10% KNORR-BREMSE 8% Office Knorr-Bremse Brake Systems Kft. announced that it will invest more than EUR 6% 10 million in a research and development (R&D) project in Hungary which will

Statistical 4% employ 60 new engineers. The Knorr-Bremse Group is the world's leading 2% Central manufacturer of braking systems for rail and commercial vehicles. The 0 Source: Hungarian branch has the most employees among the European factories.

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2006 2007 Knorr Bremse has established its development centre in 1999 in Hungary.

“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.” // István Lepsényi, CEO Knorr-Bremse Ltd.

THE GEDIA GROUP GEDIA Gebrüder Dingerkus GmbH develops and manufactures pressings and welded assemblies for the automotive industry, technical products and fastening systems for the household goods industry. The company announced that in addition to its already existing facility in Hungary, it will create 103 new jobs and an investment of EUR 21 million in the town of Tata to manufacture body parts for the vehicle industry.

BOSAL Dutch company Bosal expands its operations in Hungary by building a new production hall and creating additional 250 jobs at its site in Kecskemét. Bosal who already has 200 employees, has been operating in Kecskemét since 2004 and produces towbars, jacks and toolkits. Success by association Automotive organisations

10 11 Motorway network in Hungary The Association of the Hungarian Automotive Industry (MGSZ) 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 Ideal logistics hub in Europe development projects. The Association is an Slovakia official member of the European Association of Poland Ukraine Automotive Suppliers (CLEPA). Western Europe CIS ARA ports Hamburg Slovakia Czech Republic The Pannon Automotive Cluster (PANAC) Bremerhaven was established in 2000 and now boasts 96 members. The organisation's mission is to facilitate national and international networking 2 10 by providing opportunities for communication 1 and partnerships, offering project sponsorship 4 7 and promoting trust and willingness to cooperate among members. It also assists in Constanta company development, including surveys of supplier capacity, company benchmarking, 9 organisation of specific automotive

teaching/training programmes, and Koper, Triest Constanta professional forums, programmes and technology exchanges. Logistics centers Airport with public, international, commercial permanent border crossing MAJÁK: The aim of the Hungarian Vehicle Airport with public, international, commercial temporary border crossing Engineering Cluster (HVEC) is to coordinate the Airport development opportunities Hungarian engineering companies in the field Ports Railway connection

Automotive industry in Hungary of vehicle and vehicle part development. Container terminal The sum of the parts Hungary's network of automotive manufacturers

Northern Hungary

Central Hungary Northern Great-Plain Central Transdanubia Western Transdanubia

Southern Great-Plain Southern Transdanubia

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

Arcelor AFL BHG Csabacast Caroflex Audi Ajkai Elektronika CabTec Akzo-Nobel Coating Carrier Transicold Autoliv Albert Weber Ratipur ARRK Eagle Ottawa B.O.S. Alcoa Bosch Eismann BPW Rába Asahi Glass Central Hungary Delphi-Calsonic EMCON Dana Benteler Delta-Tech Technologies Delphi Packard Borg Warner AVL Exir Euroszol Edag Bourns Cascade Firth Rixson F.Segura EMT Bridgestone Clarion Ganz Foundry Hajdu Autó Erbslöh Continental Teves Continental Catalyst Gibbs Hübner Euro Exedy Denso Continental Temic Hi-Lex Isringhausen Euro-Elzett Diamond Electric ContiTech Knaus-Tabbert Le Bélier Eybl Euro Exedy Draexlmaier Kovács Michelin Federal Mogul Gedia EMT Lear Nief GM Powertrain Gestamp Excel Csepel Leoni Phoenix Gyôri Plast Hammerstein FESTO Mitsuba Schaeffler AG Hirschler-Glas Hankook GE Lighting Modine Kravtex ITW Siewer Hokushin Prec-Cast Southern Magna Steyr Karsai Plast Ibiden Remy Great-Plain Nemak Kirchhof Lear Saia-Burgess Rába Le Bélier MGM Salgglas Continental Rekard Produkt Lear Michelin Shinwa Phoenix Rudolph Logistik Magyarmet Mono-Ipolyfabric Stanley Electric Csaba Metal Schaeffler AG Michels NABI Starter Battery Eckerle Sempeform Musashi PEMÜ Technoplast Emika Veritas Plasticor Schwarzmüller ZF Hungária Hirschmann Visiocorp Plastimat Siemens VDO Kaloplasztik Vogel und Noot Rába Tauril Knorr-Bremse SCI Sanmina ThyssenKrupp Kunplast-Karsai SEWS Toyo Seat Linamar Suoftec Vogel-Sitze PATA Suzuki W.E.T. Automotive ThyssenKrupp Toyo Seat Webasto U-Shin Zollner Valeo Videoton Visteon Wescast THE HUNGARIAN INVESTMENT AND Financed by the European Regional Development Fund 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 Trade development 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 Zrt., H-1061 Budapest, Andrássy út 12. Phone: +36 1 472 8178 E-mail: [email protected], [email protected] • www.itdh.com • Mrs. Ágnes Henter, Deputy Investment Director • Mr. András Hajdu, Business Development Director, Traditional Industries