Mercedes-Benz New Development to Go ‘Electric Only’

An investment of over EUR one billion is set to propel Mercedes-Benz forward in the global electrification race as the German car manufacturer intends to install new assembly and body shop production lines at its Kecskemét plant, the Hungarian Investment Promotion Agency reports.

The development that is meant to maintain 4,500 jobs and create a great number of new jobs aims to adopt two new Mercedes platforms that set the stage to produce new models of higher added value. It is supported by HUF 14 billion Hungarian taxpayers' money through a government decision.

According to Mercedes-Benz’s e-mobility strategy, the company aims to make every model available with electric drive from 2025 on, and by that time the share of plug-in hybrids and BEVs (battery electric vehicles) should make up 50% of its total product portfolio. As of 2030, Mercedes-Benz intends to produce only electric vehicles.

The Hungarian plant of the company plays a key role in this transformation process. For that matter, Hungary’s first fully electric vehicle, the EQB Compact SUV rolled off the production line in Kecskemét in 2021. Now more development is to follow on the electrification front as a result of which two new platforms will allow the company to prepare for the future.

Most of all, the MB.EA (Mercedes-Benz Electric Architecture), a joint platform of mid-sized, fully electric Mercedes passenger models will enable to start the manufacturing of one battery electric model of the ‘Core Luxury’ segment from 2025 on. Actually the Hungarian plant can be among the very first ones in the whole world to pioneer production of a model associated with the MB.EA.

On the other hand, the repositioned MMA (Mercedes Modular Architecture) platform will also be adopted in Kecskemét, and accordingly, the Hungarian Mercedes plant’s vehicle portfolio will be added several new electric and conventional models from 2024. MMA will represent the entry luxury category which will allow to produce vehicles of higher added value.

Sustainability is also going to be of utmost importance: the new production lines will be operated by green energy.

As Jörg Burzer, board member of Mercedes-Benz AG and head of production and supply chain management pointed out, the company boosts the flexibility of its entire production network by integrating new products, whereas innovative manufacturing processes are to set new standards with respect to sustainability.