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Why BMW opted for Hungary, not Košice

The BMW car maker has not published why it preferred Debrecen (Hungary) to Košice as location for its €1bn car plant. The Trend weekly writes that the Hungarian location could offer investment incentives totaling 50% of the investment, while Košice only offered 35%. Debrecen has a highway connection to Budapest, while the Košice-Bratislava highway might not be completed until 2026. Hungary has a 9% corporate income tax and 0% tax on dividends, while Slovakia has 21% and 7% rates respectively. Like Slovakia, Hungary has a wide network of automotive suppliers, as Audi and Mercedes-Benz have car plants and Samsung makes electric car batteries there. Debrecen is close to Romania, where some of its suppliers might place their plants and benefit from much lower wages. Košice is just 170 km from Debrecen and some BMW suppliers might place their plants there.

Táto správa je z Ekonomiky DNES, denného prehľadu najdôležitejších ekonomických správ zo Slovenska.

This news is from the Slovak Business News TODAY, one-page summary of all the important Slovak business news.

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