Mercedes-Benz will expand its operations in Hungary by investing approximately €1 billion ($1,1 billion) into a new plant, in Kecskemet.

Once it kicks off production by the end of the decade, the factory, which will have a body shop, paint shop, final assembly, and supplier park, will create around 2,500 new jobs and focus on the manufacture of front- and rear-wheel drive cars, with an annual capacity of 150,000 units.

“The additional investment in the new plant with flexible production is a proof for the know-how of our highly motivated employees in Kecskemet. The site will gain additional manufacturing competence for rear-wheel-drive vehicles. A further factor speaking in favor of Kecskemet is the outstanding cooperation with national and local authorities. All in all, with the existing and the new plant, the site has excellent future prospects”, said the Head of Production Planning within Mercedes-Benz Cars, Rainer Rueß.

The Kecskemet facility, where the four-door CLA is being produced since 2013, followed by the CLA Shooting Brake two years later, has turned out to be a successful investment for the 3-pointed star, as both vehicles are produced exclusively in Hungary for customers around the world. Besides the two compact models, the B-Class is also assembled at the Hungarian site, and this is the first vehicle to roll off the freshly opened assembly lines in 2012.

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