Mercedes Plant Kecskemét: Higher Income and Profit

Mercedes-Benz Manufacturing Hungary Ltd. in Kecskemét, east-central Hungary, continued to increase its revenue in 2023, from almost EUR 4 billion in the previous year to more than EUR 5 billion last year; and its profit before tax also increased, from more than EUR 96 million in 2022 to about EUR 103 million last year, the company told MTI on Wednesday.

According to the annual report, the positive impact of lower raw material prices and improved manufacturing costs was offset by a higher inflationary environment and increased costs related to supply chains.

It said the Mercedes-Benz plant in Kecskemét plays a key role in the global production network of Mercedes-Benz Cars. This is evidenced by the company's investment of more than EUR 1 billion to further expand the Kecskemét plant in 2024.

In addition to the production of electric models, the existing plant is undergoing a number of modifications in preparation for the production of the successors to the current compact models, the new MMA (Mercedes-Benz Modular Architecture) models, and, as part of the Group's strategy, a new battery assembly plant for the high-voltage batteries needed for future Mercedes pure electric models. The automated and manual assembly steps will not, however, involve the processing of raw materials," the statement said.

As part of the ongoing factory expansion, a new body and assembly plant will also be built, where all-electric MB.EA (Mercedes-Benz Electric Architecture) models will be produced from the middle of the decade. The compact layout of the assembly line will allow shorter transport routes.

The existing paint shop will also undergo a comprehensive modernisation: the surface treatment and painting process will in future rely on renewable and carbon-neutral energy sources.

Series production of the current compact models will run smoothly in 2023. More than 174,000 vehicles rolled off the production line in Kecskemét last year. The number of employees at the Mercedes plant in Kecskemét in 2023 was 4,477.