ABSTRACT
Taurus is a large, state-owned enterprise that produces a variety of rubber goods, with tires for trucks and farm equipment accounting for over 50 percent of its total turnover or sales of approximately HUF 20 billion. It employs about 9,000 workers at six factories in Hungary. Although over 60 percent of tire production is exported, the actual demand for tires is even more subject to influence from international trade because a large component of domestic sales involves the provision of tires to Ikarus, Hungary's bus manufacturer. With Ikarus's markets in the former CMEA countries disappearing, the domestic demand for Taurus tires has also declined. Taurus, while nominally government owned, has been operating under the control of its corporate council. Moreover, the strong hard-currency earnings of the firm give it a measure of independence. Nevertheless, it has not been able to escape the effects of the Hungarian liquidity crunch.
