AUTOMOTIVE INDUSTRY HUNGARY

Transcription

1 AUTOMOTIVE INDUSTRY IN HUNGARY

2 OPENING DOORS FOR YOUR INVESTMENT

3 Automotive Industry in Hungary 5 6 ABOUT HUNGARY Published by the Hungarian Investment Promotion Agency, HIPA All rights reserved HIPA, AUTOMOTIVE INDUSTRY 30 LABOUR FORCE 36 INNOVATION 40 SUPPLIER NETWORK 44 HUNGARIAN INVESTMENT PROMOTION AGENCY (HIPA)

4 Automotive Industry in Hungary 7 ABOUT HUNGARY MAIN FIGURES FORM OF GOVERMENT PARLIAMENTARY REPUBLIC AREA 93,030 km 2 CURRENCY FORINT (HUF) GDP (PPP) 183,989 MILLION (2014) INFLATION -0.1% (2015, HCSO*) TIME ZONE GMT + 1 HOUR UNEMPLOYMENT RATE 6.8 % (2015, HCSO) HUNGARY 9,855,571 (as of January 2015) OTHER MAJOR CITIES CAPITAL BUDAPEST 1,757,618 POPULATION Debrecen (203,506) Szeged (162,593) Miskolc (159,554) Pécs (145,985) Győr (129,372) (as of January 2015) 78% 65% CLIMATE TEMPERATE 57% 41% (similar to the rest of the continental zone) 40% RISK OF NATURAL DISASTERS VERY LOW 27% Inward FDI stock in 2014 (percentage of GDP) HUNGARY CZECH SLOVAKIA POLAND ROMANIA SLOVENIA REPUBLIC Source: wiiw FDI Database MEMBERSHIP IN INTERNATIONAL ORGANISATIONS EU, UN, OECD, WTO, NATO, IMF, EC EU member: since 2004 (Source: *HCSO = Hungarian Central Statistical Office)

5 Automotive Industry in Hungary 9 ABOUT HUNGARY LOGISTICS & INFRASTRUCTURE PAN-EUROPEAN CORRIDORS CROSSING HUNGARY IV: Dresden Prague Vienna Bratislava Győr Budapest Arad Bucharest Sofia Thessaloniki Istanbul V: Venice Trieste Ljubljana Maribor Budapest Uzhhorod Lviv Kiev VII: Vienna Bratislava Budapest Belgrade the Black Sea X: Salzburg Ljubljana Zagreb Beograd Niš Skopje Veles Thessaloniki 4 AT THE CROSSROADS OF FOUR MAIN EUROPEAN TRANSPORTATION CORRIDORS EXTENSIVE ROAD & RAILWAY TRANSPORTATION NETWORK HIGHLY DEVELOPED LOGISTICS & TELECOMMUNICATIONS INFRASTRUCTURE IV VII V IV COMMERCIAL CORRIDORS & INFRASTRUCTURE V X VII The initial evaluation of ten countries resulted in a short list of three countries, in which we analyzed several regions and cities. Finally, we made a decision for Hungary and more specifically in favor of Miskolc. Hungary was chosen as our investment location among other reasons due to the availability of a developed infrastructure, logistics conditions, strong industrial traditions and background, as well as due to the availability of skilled workforce and an investor-friendly environment. Also, the renowned technical university of Miskolc as well as the availability of technical and vocational schools played a crucial role while considering our long term plans and strategy. Kersten Bachmann, Director, EMEA Operations Airbag TAKATA Safety Systems Hungary Ltd. MOTORWAYS IN HUNGARY M1: Budapest AUT M3: Budapest RO/UKR/SK M5: Budapest SRB M6: Budapest Pécs M7: Budapest SLO LEGEND existing planned

6 11..has reduced the CORPORATE TAX RATE to the lowest level in the CEE region. ABOUT HUNGARY INVESTMENTS IN FOCUS BUSINESS ENVIRONMENT IN ORDER TO IMPROVE THE BUSINESS CLIMATE, THE HUNGARIAN GOVERNMENT has doubled the amount of financial support for R&D ACTIVITIES in the period. introduced a new act on a practice based DUAL TRAINING in favour of business needs...has reduced the PERSONAL INCOME TAX to 15%. created one of the most competitive FLEXIBLE LABOUR CODEs in Europe (in favour of employers). has introduced a FOREIGN-TRADE FOCUSED foreign policy to attract FDI...has entered into STRATEGIC PARTNERSHIP AGREEMENTS with numerous companies, giving fast access to the government via workshops and regular consultations.

7 Automotive Industry in Hungary 13 ABOUT HUNGARY QUALITY OF LIFE EXPLORE THE COUNTRYSIDE Hungary s diverse countryside offers a wide range of outdoor activities: 11,000 kilometres of hiking routes; more than 2,500 kilometres of cycle paths; 17 golf courses; ten national parks; and many protected nature reserves for those in love with fresh air. The protected Pusztaregion, the Great Plain, the romantic Danube Bend with its historic sites, and pretty baroque towns, such as Eger, attract visitors all over the year. Lake Balaton, the largest fresh water lake in Central Europe, is a perfect holiday resort. BUDAPEST IS THE 2. BEST CITY ON EARTH (Condé Nast Traveler, 2015) EXPATS LIKE HUNGARY Budapest is a city full of surprises and wonders, with its lively centre, pretty parks, majestic river, tall church spires, and lavish spas. One of the most exciting cities in the world, Budapest is full of secrets, hidden spots to explore, and old favourites to revisit. This is the city where being bored is not an option. According to TripAdvisor, Budapest is offering the best price-value ratio in the world. According to Condé Nast Traveler readers, Budapest is the second best city on earth. INTERNATIONAL SCHOOLS Expatriates looking to stick with the curricula of their home countries can choose from a range of private international schools for their children. There are also many English, German or French public and private pre-schools for children aged from three to six. The school year starts in September and ends in June, and school buses are usually available at private schools. There are many opportunities to study in a foreign language at universities too.

8 Automotive Industry in Hungary 15 AUTOMOTIVE INDUSTRY HISTORY A long with many discoveries and inventions, Hungarians have contributed to the spread of the automobile across the world. 15th century O ne of the earliest examples of this was during the reign of King Matthias Corvinus in the 15th century, with the wheelwrights of Kocs in Komárom county and their construction of a horse-drawn vehicle with steel-spring suspension. This cart of Kocs as the Hungarians called it (kocsi szekér) soon became popular all over Europe and lent its name to the English word coach J ános Csonka and Donát Bánki constructed the first petrol vaporizer, (carburettor), which they patented in February János Csonka was the first to utilise the use of aluminium in the manufacturing of engines, he also developed controlled inlet valves and high voltage magneto ignition for petrol engines. THE CENTURIES-OLD HISTORY OF THE AUTOMOTIVE INDUSTRY IN HUNGARY O J rganised automobile manufacturing has been present in Hungary since 1905, when János Csonka, commissioned by the Hungarian Royal Post created his mail transport car in the training centre of Budapest University of Technology. ózsef Galamb with others together framed the concept of the famous Model-T Ford. His intention was to create a car that would be cheap and simple to manufacture. In this model he applied technical innovations, such as the planetary gear and the removable cylinder head. In 1913, with his lead, the Ford Factory switched to serial production on its production lines. This resulted in the Model-T becoming the world s first mass produced affordable car. During its 20 year production, over 155 million units were manufactured.

9 Automotive Industry in Hungary 17 AUTOMOTIVE INDUSTRY HISTORY THE CENTURIES-OLD HISTORY OF THE AUTOMOTIVE INDUSTRY IN HUNGARY B F éla Barényi as a constructor for DaimlerBenz, established the basic methodologies of passive safety in vehicles. Thanks to his activity, we have a crash zone, a non deforming passenger compartment, and the telescopic collapsing steering column in modern cars. In the late forties, he introduced safety crash tests to the automotive industry. erenc Pavlics was a technical director for General Motors, later participating in the formation of the Lunar Roving Vehicle in the Apollo Space Programme F erenc Anisits (Dr.) played a hugely significant role in the development of the first eight-cylinder, direct-injection diesel engine and headed up the BMW Diesel Development Centre in Steyr, Austria. Under his leadership the electronically controlled diesel injection system was introduced in 1993, for which he was awarded Ernst Blickle Innovation Award in 1995.

10 Automotive Industry in Hungary 19 AUTOMOTIVE INDUSTRY HISTORY THE CENTURIES-OLD HISTORY OF THE AUTOMOTIVE INDUSTRY IN HUNGARY now L ászló Palkovics is a Professor of Budapest University of Technology and Economics and the Centre of Competence. He was leading a 100-engineer R&D unit in Budapest, and coordinate the worldtheir wide range pre development activities of Knorr Bremse AG. In his engineering career, he has been involved in vehicle dynamics, controlled vehicle sys tems, modeling techniques, hybrid vehicle drives and safety systems. Now being as a state secretary he is dedicated in the development of new generations of engineers for the future. P ál Lukács (Phd) has achieved significant results in the area of research and development, for instance in the area of garage diagnostic tool development of brake systems for heavy trucks during the three years spent at the Knorr-Bremse development institute in Budapest. In recent years, he has been working on the development of technologies for the recovery of organic materials from car wrecks and electronic waste, and is currently engaged in projects on technological innovation in the area of recycling. T he international career of Miklós Kovács was straightforward. Initially, after completing his studies at design college, he got a job at Audi as a scholarship recipient. He took part in the preparation of studies on the Audi A8 and Audi A4 models, and now he is the designer of the current Hyundai models. In 2011, he received the award of one of Europe's most prestigious design competitions, the Best of the Best Award of the German Red Dot Design Award.

11 Automotive Industry in Hungary 21 AUTOMOTIVE INDUSTRY FACTS & FIGURES 43 OF THE TOP 100 GLOBAL OEM PARTS SUPPLIERS IN HUNGARY MORE THAN 700 SUPPLIERS IN THE AUTOMOTIVE INDUSTRY PASSENGER CARS WERE MANUFACTURED IN HUNGARY IN OEMs HAVE ALREADY CHOSEN US (AUDI, MERCEDES, GENERAL MOTORS, SUZUKI) 976 EUR/MONTH AVERAGE GROSS EARNINGS IN THE AUTOMOTIVE INDUSTRY (HCSO, 2014) 21.5 BILLION Production value of the industry amounted to 21.5 billion in % The automotive industry in Hungary registered a 17.6% growth in the first eleven months of 2015 compared to the same period of % The automotive industry accounts for 30.4% of manufacturing industrial output in the first eleven months of ,699 The number of people employed in the automotive industry was 143,699 in the 2015 Q3. 93% OF THE AUTOMOTIVE INDUSTRY'S OUTPUT IS EXPORTED THE AUTOMOTIVE INDUSTRY GIVES 20% OF HUNGARY S TOTAL EXPORTS MAIN EXPORT MARKET EU 87%

12 Automotive Industry in Hungary 23 AUTOMOTIVE INDUSTRY OEMs YOU CAN COUNT ON THE QUALITY LABOUR FORCE ACROSS HUNGARY AUDI HUNGARIA MOTOR Ltd. LOCATION Győr FOUNDATION 1993 NUMBER OF EMPLOYEES 11,411 Did you know that..the world's largest engine factory is in Győr, Hungary? We decided to establish a production unit in Hungary 23 years ago. Since then AUDI HUNGARIA MOTOR Ltd. has become the biggest engine factory and one of the most modern car production plants of the world. It employs 11,411 people. The central location of Hungary, the advanced infrastructure, the stable political and economic conditions of Hungary as an industrial site and skilled workforce all contribute to the success of our company. We are at home in Hungary." Peter Kössler, Chairman of the Board of Management, AUDI HUNGARIA MOTOR Ltd. PRODUCTS TT Coupe / Roadster, A3 Sedan / Cabriolet CAR PRODUCTION 160,206 (2015) ENGINE PRODUCTION 2,022,520 (2015)

13 Automotive Industry in Hungary 25 AUTOMOTIVE INDUSTRY OEMs MAGYAR SUZUKI CORPORATION (SUZUKI MOTOR CORPORATION) "I believe that Hungary, and especially its automotive supplier base, has an outstanding potential for development. As to our car plant in Esztergom, it is located in the heart of the country, but it is also close to the capital city of Budapest which is the largest Hungarian city with the largest pool of professional talent. The constantly developing infrastructure of our country allows for the Suzuki products, such as Vitara, an easy access to the European and global markets. Our talented, dedicated and hard-working innovation-minded personnel enable us to provide our customers with world-class cars which have the Made in Hungary plaque on them while embodying the values of Hungarian talent alloyed with state-ofthe-art Japanese technology." Dr. László Urbán Deputy CEO, Magyar Suzuki Corporation LOCATION Esztergom PRODUCTS Swift SX4 S-CROSS Vitara FOUNDATION 1991 CAR PRODUCTION 185,000 (2015) NUMBER OF EMPLOYEES 3,100 Did you know that..suzuki Vitara is the winner of the compact crossover category according to The Sunday Times' Top 100 cars of 2016? Vitara is produced exclusively in Esztergom, Hungary.

14 Automotive Industry in Hungary 27 AUTOMOTIVE INDUSTRY OEMs MERCEDES-BENZ MANUFACTURING HUNGARY Ltd. LOCATION Kecskemét PRODUCTION START 2012 NUMBER OF EMPLOYEES >4000 PRODUCTS B Class, CLA, CLA SB Did you know that..cla and CLA Shooting Brake are made solely in Kecskemét, Hungary? CAR PRODUCTION >180,000 (2015) The Mercedes-Benz Kecskemét plant, opened in 2012, has written a remarkable success story. By now, three Mercedes-Benz models are produced at the plant, and two out of them (CLA and CLA Shooting Brake) are exclusively made in Kecskemét. This success story includes our company being listed already as the 5th largest company in Hungary in 2014 based on revenue, as well as being recognized as the Most Attractive Employer of Hungary * which refers to the level of attention we give to our human capital as a key success factor. A well-trained labour force and openness to new systems like dual vocational training, which was introduced in cooperation with Mercedes-Benz in Hungary in 2011, contribute to Hungary s success in constantly luring investments. Christian Wolff CEO, Mercedes-Benz Manufacturing Hungary Ltd.

15 Automotive Industry in Hungary 29 AUTOMOTIVE INDUSTRY OEMs OPEL SZENTGOTTHÁRD Ltd. (GENERAL MOTORS) ESZTERGOM GYŐR Magyar Suzuki Audi Hungaria After 25 years and a total investment of over 1.5 billion Euros, Opel Szentgotthárd builds multiple engine families including the latest applications coming from our new Flex Plant. We also continue to invest into the future in 2015 we opened our new Opel Knowledge Center that will help educating the next generation of qualified professionals. Hungary is important for us, not only because of our manufacturing presence Opel has the largest car park with over cars running on the roads and the brand secured the number one position on the passenger car market 5th year in a row. I trust we have everything in place to look forward to another successful 25 years in Hungary. Grzegorz Buchal, Managing Director, Opel Szentgotthárd LOCATION Szentgotthárd FOUNDATION 1991 NUMBER OF EMPLOYEES 1,600 PRODUCTS engines, cylinder heads, transmissions ENGINE PRODUCTION 510,383 (2015) SZENTGOTTHÁRD General Motors KECSKEMÉT Mercedes-Benz Did you know that..the new 2016 Astra s power is delivered exclusively by the newest-generation diesel and gasoline engines which are produced at Szentgotthard, Hungary? THEY HAVE ALREADY CHOSEN US!

16 LABOUR FORCE PRODUCTIVITY YOU CAN RELY ON GLOBALLY ACKNOWLEDGED HUMAN CAPITAL AT A REASONABLE COST Automotive Industry in Hungary 31 We established DENSO Manufacturing Hungary Ltd. in 1997 in Székesfehérvár. In the first years, DENSO had only around 100 employees, while currently this number including also rented employees - is over Regarding the decisive factors that made the mother company to bring manufacturing to this location, we can mention Hungary s centralized location on the continent and the good features of the Hungarian workforce: Hungarian people are honest, clever and hardworking. It was a wise choice for us to come here, I think. It s also proved by the fact that, during the past 17 years our company in Székesfehérvár has developed into the biggest manufacturing plant within the DENSO Group outside of Japan. Ebihara Jiro President of DENSO Manufacturing Hungary Ltd WAGE ADJUSTED LABOUR PRODUCTIVITY IN THE VEHICLE INDUSTRY (%) (2013) HUNGARY LATVIA CZECH REPUBLIC BULGARIA LITHUANIA UNITED KINGDOM AUSTRIA ROMANIA SLOVENIA PORTUGAL CROATIA NETHERLANDS GERMANY BELGIUM FINLAND NORWAY GREECE ESTONIA (source: EUROSTAT) (source: EUROSTAT) Mercedes-Benz Manufacturing Hungary Ltd. BULGARIA ROMANIA LITHUANIA LATVIA HUNGARY POLAND CZECH REPUBLIC CROATIA SLOVAKIA ESTONIA MALTA PORTUGAL GREECE SLOVENIA CYPRUS SPAIN UNITED KINGDOM EURO AREA 28 ITALY IRELAND EURO AREA (18) GERMANY AUSTRIA FINLAND FRANCE LUXEMBURG SWEDEN BELGIUM DENMARK NORWAY COMPETITIVE LABOUR COSTS IN THE BUSINESS INDUSTRY Total hourly labour costs, (2014)

17 Automotive Industry in Hungary 33 LABOUR FORCE DUAL EDUCATION SYSTEM THE MEETING POINT OF CORPORATE CULTURE & EDUCATIONAL POTENTIAL What do we do to make the required labour force available for you? The cooperation of academia and the corporate players resulted in a customized education at the Universities / Colleges of Győr, Veszprém, Miskolc, Kecskemét, Debrecen. DUAL EDUCATION TRAINING of young engineers on internationally approved standards CLOSE COOPERATION between corporate partners & universities CUSTOMIZED CURRICULUMS & DEPARTMENTS strongly linked to the actual needs of the industry Hungary has adopted the well-working GERMAN MODEL in medium & higher education CURRICULUM is customized to company needs Long term market-ready WORKFORCE Participation on real INDUSTRIAL PROJECTS during studies Participation in STUDENT COMPETITIONS

18 Automotive Industry in Hungary 35 LABOUR FORCE DUAL EDUCATION SYSTEM PROFICIENCY ENGLISH LANGUAGE SKILLS 91.8% of fresh graduates has English language skills 2nd most popular foreign language: German (67%) Followed by: French (14%), Russian, Italian, Spanish All degrees include foreign-language certificate and computer skills LABOUR FORCE LANGUAGE SKILLS The number of students in the 2013/2014 academic year who were engaged in extracurricular vocational "dual" training in the 9th-11th grades of secondary schools and vocational schools was 20,500. In the 2015/2016 academic year, higher education in the dual form in Hungary is provided in the agricultural, economic, engineering and information technology areas, thus highly qualified young graduates will continue to be available for companies. Throughout the country, with student contracts and in the framework of cooperation agreement more than 400 educational institutions are engaged in extracurricular vocational and secondary school (or both) "dual" training at various faculties. In 2015, the government provided support to institutions through tenders worth HUF 2.2 billion specifically for the purpose of developing trainings, training materials and teaching aids, as well as to enhance cooperationbased relationships between educational institutions and partner organisations. + Great number of available productive labour with competitive costs There will be large numbers of students leaving the higher education who can immediately enter the world of work, without years of education and additional financial investment. It will be important to reduce the drop-out rates, to encourage practice-oriented training and to ensure real labour market-oriented diplomas. Source: EF EPI English Proficiency Index The EF English Proficiency Index 2014 (%) HUNGARY CZECH REPUBLIC PORTUGAL DOMINICAN REP. INDIA ITALY FRANCE HONG KONG

19 INNOVATION MAJOR R&D INSTITUTIONS WITH R&D CAPACITY MAJOR AUTOMOTIVE R&D CENTRES IN HUNGARY Automotive Industry in Hungary 37 GYŐR Széchenyi István University VESZPRÉM University of Pannonia TATABÁNYA Edutus College BUDAPEST Bay Zoltán Nonprofit Ltd. for Applied Research Budapest University of Technology and Economics Hungarian Academy of Sciences Institute for Computer Science and Control Jedlik Ányos Cluster Óbuda University MISKOLC University of Miskolc GYŐR AUDI VESZPRÉM CONTINENTAL VALEO DUNAVARSÁNY IBIDEN BUDAPEST AVL BOSCH NNG KNORR-BREMSE THYSSENKRUPP EGER BOSCH MAKLÁR BOSCH MISKOLC BOSCH DEBRECEN NI KECSKEMÉT Kecskemét College SZOMBATHELY EPCOS SZEGED University of Szeged SZEGED NNG KECSKEMÉT KNORR-BREMSE PHOENIX MECANO Great innovation capacity available. Dedicated to innovation: amount of Government incentives has been doubled. Great research and development potential.

20 Automotive Industry in Hungary 39 INNOVATION THYSSENKRUPP PRESTA HUNGARY LTD. Young and talented engineer pool. Nearly 400 engineers. Thyssenkrupp s Competence Centre for the development of electromechanical steering systems is located in the capital of Hungary, Budapest. Innovations to ensure reducing the car pollutant emission worldwide. Strong cooperation with universities. Developing unique products for the steering business of the group. Thyssenkrupp is a technology leader in the field of steering systems and a major innovative partner of the automotive industry worldwide. The thyssenkrupp Competence Center in Budapest has developed a complex mechatronic system that includes both software and hardware. This way automotive manufacturers are able to craft a precise, unique handling feel for the steering wheel. This system also makes it possible to decrease consumption of passenger cars, while providing for a more reliable steering on the roads. In addition, electronic steering systems enable the integration of special functions like side wind compensation or parking assistant into vehicles. Key part of our work is the development of the application software, which gives every model its distinct steering feel. Electric motor and sensor development, testing and integration are all carried out with a view to our customers, mostly premium OEMs, demand and expectations. We are developing safety critical equipment that have to meet the highest. Innovation, though crucial, is not enough today. Success in today s automotive R&D depends on whether one can transform innovative ideas into products that international car manufacturers desire. This is what our Competence Center excels in. Marc de Bastos Eckstein, General Manager, thyssenkrupp Presta Hungary

21 Automotive Industry in Hungary 41 SUPPLIER NETWORK BPW FLEXTRONICS VALEO Szombathely Zalaegerzeg RÁBA Győr DENSO VISTEON Székesfehérvár Veszprém AVL BOSCH THYSSENKRUPP Budapest MORE THAN 700 SUPPLIERS IN THE AUTOMOTIVE INDUSTRY IN HUNGARY BOSCH Hatvan Dunaharszti Kecskemét BOSCH ZF BOSCH TAKATA FAG NATIONAL INSTRUMENTS Eger Miskolc Debrecen Nyíregyháza MICHELIN The BorgWarner turbocharger plant in Oroszlány was originally built to serve one of the most important Audi factories located in the region, but it soon began to manufacture the products itself as well and broaden its customer portfolio. From the very beginning, the company has seen strong growth, doubling its turnover year by year. BorgWarner have been committed to make this growth possible along the following reasons. Investments creating workplaces and providing opportunities for the economic development of different regions have highly been encouraged by Hungarian Government incentives. BorgWarner has an excellent customer footprint in Hungary. Hungary and the region itself have an adequate industrial culture; well trained in the automotive industry. There are several technical universities in Hungary and salaried workforce can be hired from countrywide. The region itself has also been providing available labor force; both white collars and blue collars. Hungary s advantage is also its great logistics opportunities and infrastructure. Bogár Attila, General Manager of BorgWarner Oroszlany Ltd. Szeged Pécs CONTINENTAL SCHWARZMÜLLER HARMAN KNORR-BREMSE PHOENIX MECANO MAJOR AUTOMOTIVE SUPPLIERS IN HUNGARY WESTERN TRANSDANUBIA CENTRAL TRANSDANUBIA CENTRAL HUNGARY NORTHERN HUNGARY NORTHERN GREAT PLAN SOUTHERN GREAT PLAN ARCELORMITTAR / AUTOLIV / B.O.S. / BPW / DANA / DELPHI / EDAG / ERBSLÖH / EURO EXEDY / EURO ELZETT / FEDERAL MOGUL / FLEXTRONICS / GYŐRI PLAST / HIRSCHLER / KRAVTEX / LUK SAVARIA / MAGNA STEYR / NEMAK / RÁBA / REHAU / REKARD PRODUKT / VERITAS / SMR / VOGEL UND NOOT / WUPPERMANN AJKAI ELEKTRONIKA / ALBERT WEBER / ALCOA / ALUMETAL / AGC GLASS HUNGARY / BENTELER / BORG WAGNER / BOURNS / BRIDGESTONE / COLOPLAST / CONTINENTAL AUTOM. / DENSO / DIAMOND ELECTRIC / EXEDY DYNAX EUROPE / GEDIA / GESTAMP / HANKOOK / WILD MANUFACTURING / JOHNSON CONTROLS / KARSAI PLAST / KIRCHHOFF / LE BÉLIER / LEAR / MAGYARMET / MUSASHI / PLASTICOR / PLASTIMAT SOUTHERN TRANSDANUBIA AVL AUTÓKUT ENGINEERING LTD. / CASCADE ENGINEERING EUROPE / CLARION / CONTINENTAL AUTOM. / CONTITECH FLUID / DRAEXLMAIER / EMT / EXCEL CSEPEL / FESTO / FLEXTRONICS / GE LIGHTING / IBIDEN / LEAR / MGM / MICHELIN / MONO-IPOLYFABRIC / PEMÜ / SCHWARZMÜLLER / SEMCON / SIEMENS VDO / TAURIL / THYSSENKRUPP / TOYO SEAT / VOGEL SITZE / WEBASTO / GENTHERM / ZOLLNER AKZO NOBEL COATINGS / APOLLO TYRES / TISZA AUTOMOTIVE / BOSCH / CSABACAST / DELPHI / DELTA-TECH / EXIR / FIRTH RIXSON / GIBBS / HI-LEX / KNAUS TABBERT / KOVÁCS / LEAR / LEONI / MITSUBA / MODINE / PREC-CAST / JOHNSON ELECTRIC ÓZD / SALGGLAS / SHINWA / STANLEY ELECTRIC / TAKATA / TECHNOPLAST / ZF CAROFLEX / COLOPLAST / EAGLE OTTAWA / EISMANN / FAG (SCHAEFFLER) / FAURECIA / JOPP INTERIOR / F.SEGURA / HAJDU AUTÓ / HALDEX / HÜBNER / AUNDE / JÁSZ-PLASZTIK / LE BÉLIER / MICHELIN / SINTEX-NP / PHOENIX-MECANO BROSE / CONTITECH FLUID / CONTITECH RUBBER / CSABA-METÁL / ECKERLE / EMIKA / EUROFIT / FREUDENBERG / HIRSCHMANN / HBPO / JOHNSON CONTROLS / KALOPLASTIC / KNORR-BREMSE / KUNPLAST-KARSAI / LINAMAR / MAGNA EXTERIORS / PATA / PHOENIX MECANO / THYSSENKRUPP / ZORGE BHG / CABTEC / HARMAN / RATIPUR / INTERPLUS

22 Automotive Industry in Hungary 43 SUPPLIER NETWORK 43 OF THE TOP TOP 100 GLOBAL OEM PARTS SUPPLIERS are available in Hungary CONTINENTAL HUNGARIA Ltd. ROBERT BOSCH Ltd. The Bosch Group relaunched its operations in Hungary in 1991 and first established a presence in the country 117 years ago, in Robert Bosch himself founded the first company in Hungary. The Bosch Group has achieved a steady expansion in Hungary over the years, and by now has 9 companies, 7 manufacturing plants and, including the number of engineers working at the 10-year-old Engineering Centre Budapest, the largest European development centre outside Germany. The efforts of the 11,000 employees contribute to the progress of Hungary as a whole, because they are responsible for generating over 2.7% of the Hungarian GDP every year. The company s growth is also supported by the activities of the Hungarian Investment Promotion Agency. Continental has a more than 25 years history in Hungary. The company has several sites across the country, in the following cities: Szeged, Budapest, Makó and Vác. ContiTech Rubber Industrial Ltd. in Szeged manufactures two main product groups: textile conveyor belts mainly for the mining industry and rubber as well as composite hoses mainly for the oil industry. The site has the world's biggest capacity of textile conveyor belt production and supplies approximately one third of the oil hose market. Plant Budapest produces vehicle electronic components and microelectronic circuit modules, using state-of-the-art and innovative technologies, being engaged in almost all areas of vehicle electronics for the Continental divisions Chassis & Safety, Powertrain and Interior, and sup plies all major car producers worldwide. The product range in Budapest includes brake systems, various comfort and chassis elec tronic components, sensor clusters, electronic control units for electronic stability systems and hybrid drive systems, body control electronics, oil sensors etc. The plant in Budapest celebrated its 25th anniversary in ContiTech Fluid Automotive Hungaria Ltd. is a subsidiary of the ContiTech division and has production sites in Makó and in Vác. The company in Makó, which was founded in 1995, and the factory in Vác, which has been producing since 1999, were united in 2006, and since 2008 they have been called ContiTech Fluid Automotive Hungária Ltd.The profile of the company is still the production and sale of heating and cooling hoses for the automobile and truck sections, but in addition, Vác produces fuel hoses as well.

23 Automotive Industry in Hungary 45 HIPA OUR SERVICES HOW DO WE SUPPORT YOUR AUTOMOTIVE PROJECT? BEFORE YOU MAKE A DECISION WE OFFER YOU... AFTER YOU HAVE CHOSEN HUNGARY...one-stop-shop management consultancy services to address your business needs....tailor-made incentive offers and information packages on the business environment, labour market, tax regulations, etc.... location search & evaluation + site visits. We are open to your feedback and offer mediation between government and business based on your inputs. We support your further expansion and plans. PLEASE CONTACT US...meetings with HR & Real Estate agencies, Law firms and other consultants based on your needs....reference visits at companies that are already established in Hungary....assistance with your incentive application. Address: 1055 Budapest, Honvéd utca 20. Customer service: [email protected] Telephone: Web:

24 Automotive Industry in Hungary 47 HIPA SUPPLIER DEVELOPMENT FOR OEMs / SUPPLIERS OUR SERVICES FOR INTEGRATORS B2B, SUPPLIER FORUM = Personal encounter between potential suppliers and producers CERTIFIED SUPPLIER DATABASE = Online, interactive certified supplier database and virtual marketplace PUBLICATIONS, MARKET INFORMATION = Information about the current Hungarian supplier base SUPPLIER LISTS = Filtering SUPPLIER LISTS by company requests PARTNERSHIP AGREEMENT = Cooperations and common projects to develop Hungarian suppliers DEVELOPMENT OF ACTUAL SUPPLIERS = Training for the Hungarian suppliers, and potential suppliers FOR SUPPLIERS From our sole European factory in Hungary, we are supplying high quality tires to the European markets meeting all expectations of our very demanding customers. The keys to success are our higly skilled engineers and able workers, the favourable location and the excellent cooperation with all government bodies." Sangil Lee, Managing Director of Hankook Tire Hungary Ltd. UNIVERSITY AND R&D COOPERATION = Supporting educational and R&D cooperation between universities and suppliers EDUCATION, TRAINING = Professional trainings in several fields (efficiency trainings, benchmarking techniques, automotive standards) EXHIBITIONS = Appearance on Hungarian and international exhibitions and fairs

25 Automotive Industry in Hungary 49 HIPA INCENTIVES OVERVIEW GOVERNMENT INCENTIVES As a member of the European Union, Hungary s regulations on incentive opportunities are in accordance with the EU rules. One of Hungary s competitive advantages over other countries in the region is the Government s strong commitment to increase the competitiveness of SMEs and large enterprises in Hungary. Alongside the regulatory tools that contribute to the competitive business environment of local companies, Hungary offers wide-ranging incentives to facilitate foreign direct investments and reinvestments by local enterprises. Subsidies may be granted as regional aid or specific aid, such as R&D subsidies. THESE INCENTIVES INCLUDE, BUT ARE NOT LIMITED TO 25% WESTERN TRANS- DANUBIA Regional grants are the most typical forms of incentives for greenfield / brownfield investments or reinvestments. The maximum amount of regional incentive is shown on the regional aid intensity map. The map above illustrates that regional aid available for investment for a large enterprise may be up to 50% of the eligible costs of the investment, depending on the region. For investments not exceeding 50 million, the maximum intensity ratio can be increased by 10 percent for medium-sized and by 20 percent for small enterprises. Győr CENTRAL HUNGARY, Budapest 0 / 20 / 35% 35% CENTRAL TRANSDANUBIA Székesfehérvár SOUTHERN TRANSDANUBIA SOUTHERN GREAT PLAIN NORTHERN HUNGARY Szeged Miskolc NORTHERN GREAT PLAIN Debrecen 50% Pécs CASH SUBSIDIES for investments, training, job creation and R&D TAX INCENTIVES reduction of corporate tax, social tax, or for encouraging R&D activities.. LOW-INTEREST LOANS Investors may apply with their suppliers for a VIP Cash Grant together. SPECIAL INCENTIVES of the free enterprise zones The maximum available aid intensity decreases if the investment is a large investment (exceeding 50 million): 50% of the maximum aid intensity determined in the regional aid map is available for investment between 50 and 100 million, with 34% of the maximum aid intensity for investment over 100 million. For information on up-to-date and individual incentive packages please contact HIPA directly.

26 THEY HAVE ALREADY CHOSEN US! FAG SUZUKI AGC GLASS BORGWARNER DELPHI LUK SAVARIA ELTEC AUDI APOLLO FAURECIA AUTOLIV LEAR CORPORATION INFINEON MAGNA IBIDEN VALEO CONTITECH HALLA VISTEON LINAMAR EAGLE OTTAWA TAKATA FLEXTRONICS INTERNATIONAL CLARION NEMAK LE BÉLIER ALPINE MICHELIN EISSMANN DENSO THYSSENKRUPP ZF THYSSENKRUPP GESTAMP HANKOOK TIRE LKH LEONI HARMAN BECKER MERCEDES-BENZ MITSUBA DRAXLMAIER JOHNSON CONTROLS FREUDENBERG SIMMERINGE BORGWARNER TOYO SEAT OPEL ROBERT BOSCH BRIDGESTONE CONTINENTAL BROSE

27