Opel to Invest Further in Hungarian Flex Engine Plant

VIENNA – Adam Opel will pour more money into its newly built, flexible engine plant in Szentgotthard, Hungary, marking the second time this year the auto maker will increase its investment in the operation.

The latest project calls for an outlay of €60 million ($77 million) to add capacity for 70,000 new 1.8L gasoline engines. More than 100 jobs will be created.

Output of the new 1.8L is to start in late 2015. Opel has not provided details on the engine.

The Flex Plant was launched at Opel’s Szentgotthard site, which also includes an older factory, in 2012 at a cost of €500 million ($642 million). Initial capacity was for 500,000 engines a year.

Last February, the auto maker said it would spend an additional €130 million ($167 million) to increase annual capacity to 600,000 units. Some of the 70,000-unit additional capacity that will be created in the latest investment will be offset by a reduction in production capability for another engine, bringing total capacity at the plant to 650,000 units in 2015.

With the latest project, total investment in the Flex Plant will approach €700 million ($898 million).

Currently, Opel is producing all-new 1.6L SIDI (spark ignition direct injection) Ecotec Turbo gasoline 4-cyl. engines and 1.6L CDTI Ecotec 4-cyl. turbodiesels at the facility. Volume production of a new range of 3-cyl. and 4-cyl. gasoline engines displacing between 1.0L and 1.4L will begin in 2014.

The older part of Opel’s Szentgotthard site, which made 289,879 units in 2012, continues production of 1.6L and 1.8L gasoline engines. Some 75% of its production is destined for General Motors plants outside Europe, with a large portion going to the U.S. and Mexico.

Output of the existing 1.6L and 1.8L engines will continue until at least 2017.