BMW Factory Investment – Once Again Under Question. Will it Go Ahead?

The biggest investment of the year is to be delayed.

BMW released its first-quarter figures yesterday at a press conference, in attendance was Oliver Zipse, chairman of the board of the BMW Group. In addition to the statement about first-quarter figures, there was news that they would postpone their investment in Hungary for a year.

András Salgó, the company’s communications director in Hungary, confirmed that the BMW Group is still committed to its new plant in Hungary, but added that “the coronavirus epidemic is expected to affect construction work in Debrecen, so it may slow down.”

According to the Municipality of Debrecen, in a statement issued in response to the delay, they re-iterated that information published in connection with the commissioning of the Debrecen plant does not affect the implementation and termination of the contract concluded between the Municipality of Debrecen and BMW Manufacturing Hungary Kft.

The municipal investment will be completed in accordance with the terms and pace of the contract. 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, with the transfer will ensure that BMW starts further developments.

Péter Szijjártó, Minister of Foreign Affairs and Trade stated in a Facebook post, they had consulted with the company’s managers, who assured them that they were, of course, still committed to building the factory in Debrecen. The construction works of the factory are already underway, and the future managers of the factory and the investment managers will come to Debrecen next Friday, with whom they will have further discussions in person.

Photo credit: Facebook / Papp László