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Case 3

BMW chose Hungary for its new plant due to lower labor costs, a skilled workforce, and less competition. The strategic location in Debrecen offers better transport connectivity and access to EU markets, alongside government incentives like financial subsidies. Additionally, the plant is designed for both electric and combustion vehicles, aligning with BMW's sustainability goals.

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55 views1 page

Case 3

BMW chose Hungary for its new plant due to lower labor costs, a skilled workforce, and less competition. The strategic location in Debrecen offers better transport connectivity and access to EU markets, alongside government incentives like financial subsidies. Additionally, the plant is designed for both electric and combustion vehicles, aligning with BMW's sustainability goals.

Uploaded by

singh.saranjit007
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

🧩 Slide Title: Factors Influencing BMW’s Decision to Choose Hungary

1. Lower Labor Costs & Workforce Readiness

 Hungary offered cheaper labor (€9.2/hour vs. €11/hour in Slovakia).


 Skilled automotive workforce (Audi, Mercedes already established).
 Less competition for labor compared to Slovakia’s saturated market.

2. Strategic Location & Infrastructure

 Debrecen offered better transport connectivity and proximity to BMW suppliers.


 Easier access to key EU markets and major logistics corridors.

3. Government Incentives

 Hungary provided financial subsidies, tax relief, and rapid permitting.


 €34 million grant approved later for plant expansion.

4. EU Market Stability & Trade

 Full access to EU single market ensured regulatory consistency.


 Protected BMW from potential trade tariffs amid global uncertainty.

5. Electrification & Sustainability Vision

 Plant designed to produce both EVs and combustion models.


 Built as a fully carbon-neutral “iFactory,” focused on green production.

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