The government of Esztergom is suing carmaker Magyar Suzuki Zrt. for Ft 940 million (€3.2 million) over a failed land purchase, according to local portal Szeretgom. The town’s independent mayor, Éva Tétényi, told Index she disagreed with the decision made at a closed session of the local assembly, where governing party Fidesz is in majority. She did not want to confirm or deny other information published by Szeretgom.
The portal said Magyar Suzuki Zrt. had undertaken to purchase land in the industrial park if the town used a considerable part of the price to build a roundabout for the plant. A preliminary contract was signed in January 2008, but the carmaker later withdrew from signing the deal. The company’s lawyers said they could provide sufficient reason for this step if the case was brought to court: The company’s finances deteriorated following the date of signing the contract.
If the company was forced to buy the land, it could lead to the layoff of 500 employees, the company said.