Suzuki and Hungary Plan Car Venture

Suzuki Motor Co., Japan’s top maker of minicars, said Tuesday it has agreed to launch a $138-million joint venture in Hungary to manufacture subcompact passenger cars.

“A broad agreement has been reached on the project after rounds of negotiations held between both parties, and the project will be carried out with the understanding and cooperation of authorities concerned,” the company said.

The company said the $138-million project calls for production of Suzuki Swift passenger car models in Esztergom, 30 miles north of Budapest.

Production will start in 1992 at an annual rate of 15,000 units. The volume will be increased to 50,000 units in three years and then to 100,000 units in the future, the company said.

The joint venture, capitalized at $69 million (10 billion yen), will be 50% owned by Hungary’s Autokonszern RT and 30% by Suzuki. The remaining 20% will be shared by C. Itoh & Co., the Japanese trading firm, and the World Bank-affiliated International Finance Corp., the company said.

Autokonszern is a joint venture launched by 19 Hungarian companies, including banks and auto makers to promote the car manufacturing project.

Suzuki, based in Shizuoka Prefecture in central Japan, is a major Japanese four-wheel vehicle and motorcycle maker. It supplies sub-compact cars to General Motors Corp.