June 21, 2013

Will Eastern Europe be a car manufacturing super power?

In 2012, Eastern European automotive manufacturing reached the 59% of Germany's output, which is higher than France' and Italy's production all together.

The Eastern European automotive industry

has a long way behind. Many OEM and Tier 1-2 suppliers have established production facilities in the Eastern part of the EU, while the Western European car manufacturing was stagnating, the CEE production increased rapidly in the last decade. Eastern Europe provides Western style infrastructure, wide-spread supplier fundaments, low labour costssupportive governments and regulations, and last but not least: access to the world's #1 market: the European Union.


The Hungarian automotive industry

is traditionally stronger on supplier level than on OEM level. However, in the recent years, companies like Daimler, Audi, Opel, Suzuki launched new production lines and facilities, and the (OEM) output is expected to increase dramatically in upcoming years.

Trends on corporate level

Schaeffler Hungary has 3 plants in Hungary, the largest one in Debrecen, Eastern Hungary. The FAG Hungary manufactures rolling bearings for automotive industry, employing 1,200 people in the city. The  company's recent 6 million EUR investment goals to develop new products and manufacturing processes in its Eastern Hungarian plant.

The boosting Central- and Eastern European automotive industry can be surprising when you look at the European picture:

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