Posted by: Gabor Grenczer, Counsellor, Economy and Trade Posted on: Thursday 26 August 2010, 10:51

Audi, the luxury-branch of Volkswagen Group has more than doubled the territory of its Hungarian base, planning to develop it to a full-standing car manufacturing site, German magazine Automobilwoche reports.

The Gyoer-based site (which currently produces 1.38 million engines a year and hosts the assembly lines of Audi TT and A3 Cabriole) is said to be completed by a chassis manufacturing and a coating plant, and become one of the key elements in VW Group's 'Strategy 2020'.

The paper assumes that Audi has chosen Gyoer over a US contender. The decision might be explained by Gyoer's strategic location, strong Hungarian supply chains, abundance in auto mechanics, as well as by lower production costs.

Source: ITD Hungary