Budapest - Hungary's Brixxon Elektromos Auto is to build its new electric car in Austria due to economic uncertainty and unfavourable manufacturing conditions in Hungary, the business daily Napi Gazdasag reported Monday. The company has signed a lease contract for a plant in Weiz and will begin production on May 1 this year, Brixxon CEO Sandor Horvath told the newspaper.
Weiz, a small town 65 kilometres from the Hungarian border, has agreed to pay up to 40 per cent of the rental costs and pay further incentives if the company uses Austrian labour.
Horvath said that negotiations to build the Bontino car in Szentgotthard, near the Austrian border in Western Hungary, had failed.
Hungary is going through an economic slump as government measures to reduce the huge budget deficit hit home.
The company plans to build 1,000 vehicles this year and has received around 5,000 advance orders, mainly from Germany and Austria, the paper said.
