Mercedes expands plant in Kecskemét

German carmaker Daimler will invest a further EUR 250 million at its Mercedes manufacturing base in Kecskemét, east-central Hungary by 2018. The company will invest in technology developments as well as expand its production capacity, building a plant that will turn out next-generation compact car bodies.

The Hungarian news agency MTI quotes the company’s Hungarian unit chief, Christian Wolff by saying that “the investment is a clear manifestation of commitment to Kecskemét and establishes the conditions for the successful production of nextgeneration compact cars. This decision supports Mercedes-Benz’s long-term plans in Hungary.”

The investment will bring the total amount Daimler has invested in the base to over EUR 1.3 billion euros. It will make production more flexible and efficient while strengthening the plant’s role in Daimler’s global production network, the company said.

The report says the Kecskemét plant will work in close cooperation with its sister plant in Rastatt, Germany, where big investments will be made in the period to 2020 because of global demand for Mercedes-Benz premium compact cars, the company said. “This means that jobs at the Mercedes-Benz plant in Kecskemét are ensured for the long term,” it added.

Daimler opened its Kecskemét plant in the spring of 2012. It started making compact B-class models, but added the CLA coupe to the product palette in 2013 and the CLA Shooting Brake in 2015.