Audi to invest over $1 billion to enlarge Hungarian factory

German car maker Audi says it will invest more than $1 billion expanding its Hungarian manufacturing plant in the northwest city of Gyor.

The Audi announcement comes after a big investment by US giant carmaker General Motors in Hungary. The expansion of its production facility was announced on Sep. 21. Analysts says these big investments will boost investor sentiment towards the heavily export-reliant Hungarian economy. They also say they will have a positive impact on growth in a couple of years, after a deep recession last year.

From 2013, more than 120-thousand cars will be fully built in Audi's Hungarian factory. About 2-thousand new jobs will be created at the same time.