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Mercedes-Benz Improves Manufacturing Efficiency

D&T
October 17, 2025

Mercedes-Benz is improving its manufacturing efficiency to prepare its plants for the most comprehensive product offensive in the company's history, the company told MTI on Friday.

The German carmaker is investing more than EUR 2 billion in modernizing its European factories, with automation and digitalization expected to reduce costs by 10%. According to the announcement, the Next Level Production program will make production more flexible and sustainable at the company, which is preparing to start manufacturing more than 40 vehicles at its plants over the next three years. Improving flexibility and adaptability will also enable a faster response to geopolitical challenges, they wrote.

They also emphasized that Mercedes-Benz is strengthening Germany's position as an industrial location in its global production strategy, but Hungary may also play an important role, as the product offensive could begin with the production of new models at the Kecskemét plant in the first half of 2026, in addition to the Bremen plant. The production of long-wheelbase versions for the Chinese market is planned for later at the Beijing plant.

Mercedes-Benz has been manufacturing vehicles in Hungary since 2012, and a year ago, the two millionth car was produced at the local plant. According to previous announcements, the company has faced a number of difficulties recently, with sales falling by 9% in the second quarter, but the production capacity of the Kecskemét plant could increase to 300,000 per year thanks to further investment by the company.

D&T

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