Will one of Tesla’s American rivals open a factory in Hungary?
It was published on the Investment Monitor specialist portal article reminds that based on the announcement of the two companies two weeks ago, the German premium car manufacturer and the American start-up company producing electric vehicles cooperates with a new Central and Eastern European factory in the creation of which will produce electric vans. In its article, the portal looked into what arguments Hungary, Poland or Romania use when they decide on the location of the investment.
The old Mercedes car manufacturer and electric vehicle start-up company plans to establish a new factory in Central and Eastern Europe to produce electric vans. The Investment Monitor investigates where the best choice is outside of Hungary, Poland and Romania. @Rivian
— Investment (Monitor) September 20, 2022
What is known about the deal is that Mercedes will form a joint venture with the highest-paid industrial startup in the United States to produce electric vans, and that the companies will share the costs of creating an entirely new, all-electric car manufacturing plant. using a Mercedes location in Central and Eastern Europe.
The factory will produce large electric vans for both companies. The opening date has not yet been confirmed, but according to official reports, the plant will start operating “within a few years”.
The specialist portal recalls that Mercedes plans to invest 2 billion dollars in European plants to prepare them for the transition to the production of electric cars by the end of the decade. Meanwhile, it is also known from earlier that Rivian has been planning to open a European factory since the beginning of 2021.
In his Investment Monitor article, he asks which countries could be considered for the establishment of the factory. In this regard, it is highlighted that Mercedes currently operates factories in three Central and Eastern European countries – Hungary, Poland and Romania.
They state, among other things, that in terms of foreign direct investment (FDI) per capita and car production Among the locations analyzed, Hungary is the leading destination country in the automotive industry.
The excellent infrastructure speaks for Poland, while Romania would be the most favorable and cost-effective solution.
Overall, the analysis states that since Mercedes has already invested in the activities related to the production of electric cars in all three countries in the region, each country is therefore in terms of opening a new factory, and the company has long established relationships with the relevant investment promotion agencies.
According to the analysis, Hungary seems to be the most likely because of its innovation capabilities, to win the investment, they note that the current affairs of the Hungarian government may even present obstacles to this. In this case, Poland can also seem like a very attractive option.
Cover image source: Rivian