2022
DOI: 10.1556/032.2022.00034
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Developing a local supply chain network: The case of Magyar Suzuki in Hungary

Abstract: This study examines the role of Magyar Suzuki in the Hungarian automotive industry. It is the oldest foreign vehicle manufacturer and a symbol of modernisation in the post-communist era in Hungary. Due to EU's local content rule, Magyar Suzuki, in comparison with its counterparts in the region, has established a locally embedded supply chain network. Magyar Suzuki has facilitated process and product upgrading of the local suppliers in Hungary. Nevertheless, functional upgrading is relatively limited due to aut… Show more

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Cited by 4 publications
(2 citation statements)
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“…Additionally, Korea is listed in the case of Czechia, which can be connected to the presence of Hyundai. In Hungary, the Japanese Suzuki is present, but related inputs from Japan have decreased, as many suppliers followed Suzuki to Hungary and established local production capacities (Natsuda et al 2022). Local electronics industries are important value added contributors in both countriesbut these are mainly local subsidiaries of foreign-owned multinationals.…”
Section: Total Backward Linkagesmentioning
confidence: 99%
“…Additionally, Korea is listed in the case of Czechia, which can be connected to the presence of Hyundai. In Hungary, the Japanese Suzuki is present, but related inputs from Japan have decreased, as many suppliers followed Suzuki to Hungary and established local production capacities (Natsuda et al 2022). Local electronics industries are important value added contributors in both countriesbut these are mainly local subsidiaries of foreign-owned multinationals.…”
Section: Total Backward Linkagesmentioning
confidence: 99%
“…One reason for that is that over time, this industry has become the most important manufacturing sector not only in Hungary, but also in other countries of the Central and Eastern European region (Czechia, Romania, Slovakia). These countries have attracted a large amount of FDI in the automotive industry, thus the leading players are foreign-owned subsidiaries of large (first of all German, but also other, including non-European) OEMs and important supplier firms (Natsuda et al 2022;Szabo et al 2023). Domestically owned companies do not figure highly among the local players (Molnár et al 2020;Gerőcs 2022), with the possible exception of Czechia (Pavlínek 2020).…”
Section: The Automotive Industry -An Analytical Focusmentioning
confidence: 99%