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BMW to build EUR1bn car manfacturing facility in Hungary

ABR Staff Writer Published 01 August 2018

German automaker BMW is expanding its production network in Europe with a new facility to to be established near Debrecen, Hungary.

The company said the new plant for BMW models will set new standards in digitalization, sustainability and flexibility.

It will have innovative solutions for automation, assistance systems and flexible logistics applications.

The facility will manufacture conventionally as well as electrically powered vehicles in one production line.

BMW said the decision to build the plant in Hungary reaffirms its perspective for global growth.

After investing in China, Mexico and the US, the company plans to strengthen its activities in Europe to maintain worldwide balance production between Asia, America and Europe.

BMW stated that Europe is the most important market for the company. Last year, it accounted for nearly 45% of all vehicle sales, which was 1.1 million units being sold.

By end of June this year, BMW grew across several markets in the continent, where vehicle deliveries totaled more than 560,000 units, which is claimed to be a year-on-year increase of 1.2%.

This year alone, the company has invested more than €1bn in its German sites in upgradation and in preparing those facilities to produce electric vehicles.

BMW has been operating through a representative office in Hungary since 2004 and claims to enjoy positive relations with suppliers in the country. Last year, the country purchased materials and services worth €1.4bn.

BMW Production Board Member Oliver Zipse said: “In the future, every BMW Group plant in Europe will be equipped to produce electrified as well as conventional vehicles. Our new plant in Hungary will also be able to manufacture both combustion and electrified BMW models – all on a single production line.

"It will bring greater capacity to our worldwide production network. When production commences, the plant will set new standards in flexibility, digitalisation and productivity.”

Image: BMW Group to expand production network in Europe. Photo: Courtesy of BMW Group.