The Hungarian Government and Magyar Suzuki Corporation have signed a strategic partnership agreement, establishing the framework for further expansion of MSC’s manufacturing and developing activities in Hungary.
Magyar Suzuki, as Suzuki’s only European car production base, delivers automobiles to the whole continent (as well as to several regions outside Europe).
The new strategic cooperation can improve Suzuki’s competitiveness in Europe, too, said the carmaker.
For the UK market, Magyar Suzuki produces Splash, Swift, Swift Sport and SX4 models.
By signing the partnership agreement, the Hungarian Government has expressed its intention to support, in several ways, a stable and predictable operation for Suzuki in Hungary, while Magyar Suzuki Corporation confirmed to the Government MSC’s plans for a long-term presence in the country and for manufacturing Suzuki models for the Hungarian and European markets.
“In the present situation in the European car market, even in very tough economic circumstances, we have been able to maintain our production and even launch new models from time to time, being in a special position as Suzuki’s sole manufacturing company on the continent providing vehicles to all of the European markets,” Hisashi Takeuchi, managing director of Magyar Suzuki Corporation said.
"In order to further enhance our competitiveness, we need stability and a supportive economic background in the long run. Taxation, an incentive package for investment, well-trained labour force, improvements in infrastructure, as well as a healthy network of accomplished Hungarian suppliers are all parts of such a business environment, as are labour market regulations," he added.
Magyar Suzuki provides jobs in Hungary through direct employment as well as through its extended network of Hungarian suppliers and dealers, which makes the company a major stakeholder in the automotive sector and a supporting pillar for the economy of Hungary.
Under the umbrella of the present agreement, MSC hopes to increase its current share of nearly two per cent in Hungarian export and develop its uniquely wide suppliers’ base in the country, thus supporting the growth of small and medium size businesses in the automotive sector.
Magyar Suzuki hopes that the agreement will create a firm ground for further development and investments. The company has confirmed its plans to continue investments, which have exceeded 1.3 billion EUR since the establishment of Magyar Suzuki.
An award-winning journalist and editor, with two decades of experience covering the motor retail industry, and accredited by the Institute of Leadership and Management (ILM) plus the National Council for the Training of Journalist (NCTJ)
As editor of AM since 2016, Tim is responsible for its media content, planning and production across AM's multiple channels, including the website, digital reports, webinars, social media and the editorial content of AM's events, Automotive Management Live and the AM Awards. His focus is on interviewing senior leaders of franchised dealer groups and motor manufacturer national sales companies to examine latest developments in UK motor retail.
Graziella Robbins - 27/11/2012 12:36
With companies like Ford and GM constantly in the news bemoaning their lot, one tends to overlook the likes of Susuki quietly beavering away producing new models and investing wisely in it's future. Hungary is a great place to expand as other companies are showing, such as the German Schaeffler Group who are currently expanding their Hungarian operation creating an additional 700 jobs over the next couple of years. The smart companies are taking advantage of the lower wages/overheads to increase profits whilst also providing jobs within Hungary thus reducing the need for Hungarians to migrate to other parts of the EU and working for lower wages than someone in say Germany or the UK could afford to work for. Got to be a help with reducing unemployment in these countries surely ?