Audi is planning to invest HUF32 billion (EUR104 million) at its car manufacturing plant in Gyõr, Hungary, according to a report by the local MTI news agency. The report quoted Hungarian foreign minister Peter Szijjarto as saying that Audi would make the new investment in the facility with the government providing a HUF6-billion contribution in the form of a direct subsidy. The report claimed that the investment would create 380 new jobs at the plant.
Significance: The Gyõr plant became a full car manufacturing site in 2013 when it began production of the new Audi A3 sedan, for which Gyõr is the exclusive production site. The plant also makes the TT and Roadster, and is one of the VW Group's main powertrain production sites, building in the region of 2 million powertrains a year. There have been press stories that Gyõr's position would be in jeopardy because it manufactured 3 million of the EA189 powertrains involved in the VW emissions affair, although these stories can be discounted as there is no evidence that Gyõr will become less important as a powertrain production location as a result. However, VW is reviewing all its planned investments as part of the response to the diesel emissions affair and it is likely that any planned investment in Gyõr is also subject to this process.
