Hungary offers a specifically favourable business environment for vehicle manufacturers but the cabinet has no knowledge of talks that would confirm press reports on South Korea’s Kia Motors Corp. and Germany’s BMW AG are mulling setting up plants in the country, said Péter Szijjártó, state secretary responsible for foreign economic relations, late on Wednesday. Local daily Magyar Hírlap reported on Tuesday that Kia Motors was to establish an engine manufacturing unit in Hungary that would employ 3,000 to 4,000 people. At the same time, a Kia official denied the report.
„I can confirm that Kia Motors has no plans nor is considering the establishment of an engine factory in Hungary,” general manager of Kia’s global public relations Michael Choo told Dow Jones Newswires in an emailed response.
German business daily Handelsblatt reported in mid-May BMW was also looking at building a plant in the central Eastern European region with the Hungarian city Miskolc cited as a possible location.
Speaking to commercial broadcaster HírTV on Wednesday evening, Szijjártó said „currently there are no consultations on large investments – with either of the companies in question – that would be in such a phase that would make these worth mentioning as something concrete.”
„It is a fact that Hungary is an attractive target country, but I cannot comment on any of these reports because I have no knowledge of negotiations that would back these reports up,” he added.
Szijjártó noted that Hungary offers specifically good conditions for car manufacturers. If a company makes decisions based on references and sees that Audi, Opel and Mercedes can operate in Hungary profitably it could be a good argument to choose Hungary.