Are German car manufacturers no longer so fond of Hungary?

August 18, 2022

Two Hungarian luxury car companies have made the decision to send most of their profits back to their parent company. This means that they don’t know how to spend them yet.

Although Audi in Gyor still trails its record sales in 2019, it has already exceeded its sales in 2020, writes Mfor.

Audi Hungary’s domestic sales are very low so it didn’t matter that the exports increased by 30% compared to last year. The company also had EUR 7.67 Billion in exports by 2021, as opposed to EUR 7.5 Billion in 2020.

 

Pre-tax profits fell from EUR 500m to EUR 335m a year ago. Audi will pay a significant dividend, just like in the previous two years. Audi took the 2019 results home and decided to pay two-billion euros. A dividend of EUR 6billion was determined on the after-tax profits of the previous year. This figure is in addition to the free profit reserve. After the 2021 business year’s after-tax profit, dividends of EUR 1.022 trillion, or around HUF 400 billion will be paid.

Mercedes-Benz’s sales last year were EUR 3.1 billion, an increase of EUR 3.4 billion from the previous year. According to the report, the decline can be attributed to the fact that Mercedes-Benz produced just 135,000 vehicles in 2018, which is about 25,000 more than it did in 2020. The report also revealed that models produced a greater number of higher-value, more expensive versions. The company’s profit grew from EUR 39.3 millions in 2020 to EUR 67.6million last year after taxes.

Although the company made the entire profit to its German parent company, the amount of 67 millions euros (roughly 27 billion forints) is dwarfed in comparison to Audi’s Gyor dividend.

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