Manufacturers these days struggle to get more competitive in each and every way imaginable. The name of the game is globalization, a concept that led to Mexico handling the production of the second-generation Audi Q5. In Europe, however, a relatively new automaking hub is represented by a place called Hungary.
Located in Central Europe, Hungary morphed into a communist satellite after the conclusion of World War II. But after the revolutions of 1989, the country transitioned to democracy and capitalism. Having joined the European Union in 2004, automakers started looking toward Hungary for building their cars.
Why? Well, that’s a relatively simple question to answer. Other than subsidies accorded by the government, Hungary also happens to have lower wages than Germany, for example. For 2015, the average monthly wage in Hungary stood at $888 according to UNECE statistics. Germany, by comparison, is a little bit better off at $3,478. Hence, Mercedes-Benz and Audi have migrated a part of their production to the Central European state for obvious reasons.
But despite the financial advantages of such a move, Mercedes-Benz and Audi aren’t immune to Hungary’s problems. As per a report from Automotive News, executives of the two manufacturers told the media that labor shortage is the most pressing headache the two brands are faced with.
Curious what’s the reason behind the said shortage of workers? After Hungary had become a member of the EU, free movement saw many Hungarians emigrate to Western Europe for better everything. Considering that the automotive sector of the industry accounts for more than 10 percent of Hungary’s exports, a shortage in workforce is no good news.
But workforce is just the tip of the iceberg. "There are some reasons for concern," noted Peter Koessler, Audi Hungary’s managing director. "If we think of human capital, we see problems in the necessary quantity as well as finding sufficiently skilled colleagues,” concluded the Audi official. In an epoch driven by trends and technological advances, skilled professionals and programmers, among others, are dearly needed by Hungary's auto industry.
As a brief refresher, Gyor is the place where Audi manufactures the A3 hatchback and TT sports car. Mercedes-Benz, on the other hand, builds the CLA-Class and B-Class in a plant located near the city of Kecskemet.
After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well. Full profile
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