BMW postpones opening of Debrecen plant but construction still underway

BMW’s announcement affects only the commissioning of the plant, which is expected to create 1,000 jobs.

BMW postponed the opening of the Debrecen plant for a year after the company failed to receive state aid promised by the German government to revive the car market.

Minister of Foreign Affairs and Trade Péter Szijjártó announced that they talked with BMW executives, who assured the ministry that they were still committed to building the plant in Debrecen. The future managers of the factory and the managers of the investment will come to Debrecen next Friday, and the construction of the factory is still underway.

The Municipality of Debrecen stated that the announcement does not affect the implementation of the contract concluded between the Debrecen Municipality and BMW Manufacturing Hungary Kft. The municipal investment will be completed per the contract, and within a few days, the entire area will be handed over to BMW’s Hungarian company in accordance with the agreed technical content. Fulfillment of all the conditions undertaken by the municipality for the transfer will ensure that BMW starts further developments. The announcement of BMW Group is not about the start of construction of the plant, but about the commissioning of the plant, the mayor of Debrecen stated. 

Following the announcement of BMW’s quarterly results, the car company announced that it would take several austerity measures after the company’s leaders, together with VW and Daimler, failed to get Chancellor Angela Merkel to introduce a EUR 4,000 car purchase subsidy for electric and conventional internal combustion engines. 

The Bavarian carmaker and Debrecen signed an agreement last September, with the value of the investment exceeding EUR 1 billion. The agreement stipulated for the new plant to initially produce 150,000 vehicles a year.

Comprising an area of ​​400 hectares in the Northwest Economic Zone, just next to Debrecen, the factory is to feature state-of-the-art automotive technologies to manufacture both conventional and electric cars and should create more than 1,000 jobs.

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