Audi Spends EUR135 Million To Expand Hungary Engine Plant

BUDAPEST -Dow Jones is reporting that Volkswagen AG unit Audi AG said Thursday that it has expanded its engine plant close to Gyor in northwest Hungary at a cost of EUR135 million.

As a result of the investment, Audi's output of eight-cylinder engines will rise to 250 a day from 100, the company said in a release. After a run-up to full production capacity by mid-2003, Audi will be able to manufacture four types of eight-cylinder engines.

Since it established the Hungarian plant in 1993, Audi has invested close to EUR1.4 billion in Hungary, making it one of the largest investors in the country.

"The success of Audi makes and of several Volkswagen models is impossible to imagine without the quality of the engines from Gyor," the release quoted Audi Chairman Martin Winterkorn as saying.

Last year Audi manufactured 1.2 million engines and more than 50,000 cars in Hungary, generating sales of EUR3.4 billion.