Budapest, November 27, 2012: Continuing over 20 years of cooperation between the Hungarian Government and Magyar Suzuki Corporation (MSC), the parties signed a strategic partnership agreement for cooperation to strengthen the existing economic bonds and promote sustainable and steady operations. The new agreement establishes the framework for further expansion of MSC’s manufacturing and developing activities in Hungary, and also enables MSC to maintain its competitiveness on the European market.
By signing the pact, the Hungarian government has expressed its intention to support, in several ways, a stable and predictable operation for Suzuki in Hungary, while MSC confirmed its plans for a long-term presence in the country and for manufacturing Suzuki models for the Hungarian and European markets.
“In the present situation in the European car market, even in very tough economic circumstances, we have been able to maintain our production and even launch new models from time to time, being in a special position as Suzuki’s sole manufacturing company on the continent providing vehicles to all of the European markets,” said Hisashi Takeuchi, managing director of Magyar Suzuki Corporation. “In order to further enhance our competitiveness, we need stability and a supportive economic background in the long run. Taxation, an incentive package for investment, well-trained labour force, improvements in infrastructure, as well as a healthy network of accomplished Hungarian suppliers are all parts of such a business environment, as are labour market regulations,” he added.
Magyar Suzuki provides jobs in Hungary through direct employment as well as through its extended network of Hungarian suppliers and dealers, which makes the company a major stakeholder in the automotive sector and a supporting pillar for the economy of Hungary.
Under the umbrella of the present agreement, MSC hopes to increase its current share of nearly two percent in Hungarian export and develop its wide supplier base, thus supporting the growth of small and medium size businesses in the automotive sector.
Magyar Suzuki, as Suzuki’s only European car production base, delivers automobiles to the whole continent (as well as to several regions outside Europe). Through its export activities MSC provides cars to European countries but also to Japan, Russia, Ukraine, as well as to the Middle East and some Northern African territories including Israel and Morocco.
Magyar Suzuki Corporation
The company was established by its major shareholder Suzuki Motor Corporation together with other business partners in 1991. The kick-off model, the first-generation Swift in Hungary rolled off the production line in 1992, followed by Wagon R+ in 2000, Ignis in 2003, the second-generation Swift in 2005, SX4 in 2006, Splash in 2008, the new Swift in June 2010 and the latest model, Swift Sport launched in fall 2011. All models currently manufactured in Esztergom are built with engines complying with Euro 5 environmental standards.
Besides production for the European and domestic markets, MSC carries out other commercial activities such as selling imported cars, motorcycles and outboard motors. MSC markets Suzuki motorcycles in eight countries (Slovakia, Slovenia, Croatia, Serbia, Romania, Bosnia, Kosovo and Montenegro).