The Szentgotthárd plant was previously owned by General Motors and produced mainly resources for Opel cars. Following the sale of Opel in 2017, the plant operated as part of the PSA Group (now Stellantis), and from the beginning of last year, it began producing a 3-cylinder, 1.2-liter, turbocharged petrol engine, with a capacity of 350,000-390,000 units per year.
The Hungarian government started to discuss the future of the Szentgotthárd plant with Stellantis earlier this year. Negotiations are still ongoing and details will only be disclosed later, but Hungary will provide state support for the investment of tens of millions of euros to produce yet another petrol engine, a four-cylinder, 1.6-liter one.
With the production of both, the Minister of Foreign Affairs and Trade Péter Szijjártó said that the factory’s performance will increase significantly, as will the number of employees.
The minister stated that the new line of petrol engines is for Stellantis’ hybrid-powered vehicles and represents the technology of the future for Szentgotthárd; the new line will also provide work for a decade for those living in the city and the region.
Production on the 1.6-liter engines will start in the first half of 2023, and a 50-percent capacity expansion will bring a significant increase in headcount to the current 800 employees, the minister pointed out.
The Stellantis Group aims to be a world leader in sustainable mobility. It has factories in more than 30 countries, employs 400,000 people worldwide and manufactures 14 car brands.