Mercedes to Spend EUR Billions to Expand Kecskemét Plant

Ola Källenius, chairman of the board of Mercedes-Benz, visited Hungary and told the news portal Index that the company will invest EUR billions in its Kecskemét plant, located southeast of Budapest.

In the interview, reviewed by portfolio.hu, Källenius said that the Kecskemét plant is a very important part of their global production network and that they will invest billions of euros in the next few years in the plant, with a view to next-generation vehicle architectures and models.

They are expanding the Hungarian plant, they are also building a battery assembly plant, which will be a completely CO₂-neutral plant, they will use geothermal energy for heating, they are reorganizing the whole production in cooperation with their partners in Hungary to rely on renewable energy as opposed to fossil-based.

The Mercedes CEO also talked about expanding the product portfolio. Källenius stated that from the middle of the decade, Mercedes' luxury car customers could also be served from Kecskemét, but he did not name specific models.