NEARSHORING IS NOT PLUG-AND-PLAY: LESSONS FROM BMW IN HUNGARY
BMW flies German staff to its Debrecen plant almost every day, because Hungary's lower labour costs come with a thin pool of skilled workers: location decisions must be judged on talent, not on wages alone.
IN SHORT
BMW sends staff from Munich, other Bavarian plants and Leipzig to Debrecen several times a week, because the plant cannot find enough trained workers locally (Handelsblatt, 14 October 2026).
Hungary's cost advantage is large: an hour of labour in Germany costs almost three times as much (Eurostat, cited by Handelsblatt).
Talent availability, ramp-up cost and room to scale should be tested before a site decision, not after.
Investment promotion agencies build trust with honest labour market data and training capacity ready before the plant opens.
THE BUSINESS CASE STILL WORKS
Last Monday, a Lufthansa flight from Munich to Debrecen left more than an hour late. On board were BMW employees heading to Hungary. According to Handelsblatt, this has become routine: in the week of 5 October alone, Debrecen was served six times from Munich and Leipzig.
The reason for the investment is easy to see. Hungary offers lower taxes, levies, wages and energy costs than Germany.
Labour cost: Eurostat data cited by Handelsblatt shows an hour of labour in Germany costs almost three times as much as in Hungary.
Production cost: Mercedes states that its production costs in Hungary are 70% lower than in Germany.
Capital committed: BMW has invested more than €2 billion in Debrecen. Mercedes is doubling its Kecskemét plant from 200,000 to 400,000 units.
Ramp-up speed: Debrecen reached three shifts within nine months, a record for a new BMW plant. It builds the iX3, with more than 100,000 pre-orders and over 30,000 deliveries so far.
THE CONSTRAINT IS TALENT
According to Handelsblatt, BMW cannot currently ramp up Debrecen without German colleagues, because the plant does not find enough trained workers locally. The visitors train local staff and transfer know-how. BMW says temporary deployments are a planned part of every new plant launch, as in Mexico and China, and that knowledge flows back into its network.
The labour market makes the gap hard to close quickly:
Qualified personnel was already scarce around Debrecen in 2024.
Ukrainian workers dropped out because of the war, and Romanian workers were politically unwelcome.
Hungary passed a stricter immigration law than ever before, according to the head of the state investment agency HIPA.
Hungary has just under 10 million inhabitants. Bavaria has around 13 million.
BYD plans to start production in the south-east of the country this year and aims for about 40,000 employees in Europe by the end of the decade.
BMW responded by sending an applicant bus across the country, hiring people without prior experience and building the training centre first. The plant could physically double its output, but Handelsblatt notes that this will depend on staffing.
FIVE LESSONS FOR INVESTORS
Test the labour pool before the incentives. In a smaller market, a single large employer can saturate the regional talent pool. Map competing employers, training pipelines and commuting radius, not just average wages.
Budget for the ramp-up. Expats, training centres and travel are real costs. BMW does not disclose what its flights cost, but they belong in the total cost of operation from day one.
Understand your whole recruitment toolbox. If migration rules, geopolitics or politics close off labour sources, local supply is all you have. Check this before you sign.
Expect competition. New arrivals such as BYD target the same skilled workers. Mapping which investors are coming to a region is part of due diligence.
Make scalability a site criterion. Space for expansion is not enough if the workforce cannot grow with it.
THREE LESSONS FOR INVESTMENT PROMOTION AGENCIES
Publish honest labour market data. Investors remember the gap between promise and reality. Credible figures on available skills build long-term trust.
Treat training as a location factor. Vocational partnerships and training capacity ready before the plant opens can matter as much as tax incentives.
Consider secondary regions. When a hub is saturated, regions with less competition for skilled labour deserve a place on the shortlist.
THE TAKEAWAY
Eastern Europe remains a strong industrial location, and nothing in this story changes that. What changes is the question investors should ask: not "where is labour cheapest?" but "where can we build and sustain the workforce we need?"
At Global Aldea, we support companies with structured, research-led site selection, and investment promotion agencies with market intelligence, investor targeting and regional strategy. We see both sides of the table.
Planning a European expansion, or positioning your region for investors? Write to info@Global-Aldea.com or call +49 30 552167 53.
FREQUENTLY ASKED QUESTIONS
WHY DOES BMW FLY GERMAN EMPLOYEES TO HUNGARY?
According to Handelsblatt (14 October 2026), BMW cannot currently ramp up its Debrecen plant, which builds the electric iX3, without German colleagues, because enough trained workers are not available locally. The visitors train local staff and transfer know-how. BMW says temporary deployments are a planned part of every new plant launch.
IS EASTERN EUROPE STILL ATTRACTIVE FOR MANUFACTURING INVESTMENT?
On cost, yes. Eurostat data cited by Handelsblatt shows labour in Germany is almost three times as expensive as in Hungary, and Mercedes reports 70% lower production costs there. But the BMW case shows that skilled labour supply must be verified for each region, because a smaller labour market can be saturated by a few large employers.
WHAT SHOULD COMPANIES CHECK BESIDES LABOUR COST WHEN CHOOSING A LOCATION IN EASTERN EUROPE?
Five things: the regional pool of skilled workers and competing employers, the training pipeline, recruitment options beyond local labour (including migration rules), the cost of ramp-up with expats and training, and whether the workforce can grow with the site.
WHAT CAN INVESTMENT PROMOTION AGENCIES DO TO ATTRACT MANUFACTURERS?
Publish honest labour market data, have training capacity ready before the investor arrives, and present secondary regions where competition for skilled labour is lower.
WHO CAN ADVISE ON SITE SELECTION AND FOREIGN DIRECT INVESTMENT IN EASTERN EUROPE?
Global Aldea, a Berlin-based FDI consultancy, advises corporate investors on site selection and supports investment promotion agencies with market research, investor targeting and regional strategy. Contact: info@Global-Aldea.com.
ABOUT GLOBAL ALDEA
Global Aldea is a foreign direct investment (FDI) consultancy based in Berlin, Germany. It advises corporate investors and mid-sized companies on location strategy and international expansion, and supports investment promotion agencies (IPAs) and economic development organisations (EDOs) with investor targeting and regional policy. Services: site selection strategy for corporates, exclusive EDO/IPA representation, individual market research and studies, and regional policy support.
Global Aldea, Unter den Linden 21, 10117 Berlin, Germany. www.global-aldea.com
SOURCES
Handelsblatt, "Autobauer: Warum BMW deutsche Fachkräfte nach Ungarn fliegen lässt", Felix Stippler, 14.10.2026
Cost figures are cited by Handelsblatt from Eurostat and from Mercedes-Benz.
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