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Audi A3 convertible to be built in Hungary
By Yoann Besnard on 4 July 2007 | 
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The long-awaited open-top Audi A3 will join the Audi TT coupé and roadster on the assembly lines in Audi's Hungarian factory. In a statement, Audi declared “”The Gyor (production) site (in western Hungary) has excelled in the production of premium vehicles during recent years ... therefore it is optimally suited for the assembly of a new model.“
Commentators may say that the factory was elected thanks to the tax exemption given to Audi by the Hungarian government. Indeed in October 2006, Hungary set up a new solidarity tax - 4% - payable by all companies in order to reduce the public deficit from 10.1% to 3.2%. Unhappy with this development, Audi declared that it would stop investing in Hungary. As the first exporter in the country and employer of more than 5,000 people, the company's statements tend to be considered as requests. After negotiations, the Hungarian government modified the law to please the German carmaker.
This is not the first tax exemption Audi has received as a sweetener from Hungary. When Audi decided to open a factory in the country, it was offered a profit tax exemption until 2011. Since then, it has invested 3 billion Euros and will invest one billion more to build the Audi A3 convertible.
Source: Reuters
Source photo: Auto, Motor und Sport
