Foreign minister: New owner to invest in Szentgotthárd car plant

The future of the car manufacturing plant in Szentgotthárd, western Hungary, is secure after last year’s change of ownership, with new owner PSA to invest into resetting the plant to manufacture Peugeot motors from 2020, Péter Szijjártó, the foreign affairs and trade minister, told a press conference in Budapest on Wednesday.

The plant is to continue production on the old manufacturing line until then, the minister said.

French conglomerate PSA bought Opel, which owns the plant, from General Motors in 2017, Szijjártó noted. The Hungarian government immediately initiated talks with the new owner to probe planned changes in operation, Szijjártó said.

PSA is the second largest car manufacturer in Europe, and seems to regard the Hungarian plant and its advanced technology as very important, he said.

Opel Szentgotthárd CEO Grzegorz Buchal said at the joint press conference that the investment for the new production line is already under way. Hungary was picked for its advanced technology, competitiveness and performance, he said. Half of the suppliers used for the investment will be local, he said.

Buchal called for government action to improve the infrastructure and pledged to continue cooperation.

Featured image: MTI

Source: MTI