BMW puts off building Hungarian plant

BMW puts off building Hungarian plant

May 6, 2020 0 By autotimesnews

BMW decided to immediately postpone a large expense item: the construction of a new plant with large production facilities in Hungary has been frozen.

Automakers are currently looking for ways to deal with the huge financial downturn caused by the coronavirus pandemic. BMW decided that abandoning the planned investment is a good way to maintain sufficient liquidity. According to foreign media reports, BMW CFO Nicholas Peter announced that he would save 1 billion euros if he delayed the construction of a large plant in Hungary.

According to the original plan, the company was to be built this year in Debrecen, Eastern Hungary, near the Romanian border. Car production was supposed to begin in 2023. It is reported that construction will be delayed for at least a year. This news extremely disappointed the local population, as it deprived potential jobs of about 1,000 employees. BMW plans to produce 150,000 cars a year, including models with electrified powertrains.