Mercedes to invest €50 million in Hungarian plant

Published:  17 December, 2020
Mercedes-Benz in Kecskemét

The German premium car manufacturer is reported to be investing €50 million to add a full electric production line at its manufacturing plant in Kecskemét, central Hungary.

The investment was announced by Péter Szijjártó, Hungary’s Minister of Foreign Affairs and Trade, on December 14. He said the Government is contributing with a €15 million grant and about 4,400 jobs are expected to be created with the expansion. The Mercedes-Benz plant in Kecskemét has around 4,700 employees. In 2018 it produced more than 190,000 compact vehicles, including the compact four-door CLA Coupé and the CLA Shooting Brake. Both of these models are produced exclusively in Kecskemét for the world market. Since May 2018, the new A-Class has been part of the product range at the Hungarian production location.

According to Mercedes-Benz, since it commenced production in 2012, its Hungarian plant has constantly increased in importance within the global production network of Mercedes-Benz Cars. Alongside digital networking, the strengths of the production network are also said to include the direct dialogue with the lead plant for the compact cars in Rastatt, Baden-Württemberg in Germany.