Record year at Mercedes’s Hungarian operations

Mercedes-Benz Manufacturing Hungary Ltd. has had another successful year: its production last year was 4.1% higher than in 2016, and more than 190,000 Mercedes-Benz compact cars were manufactured in its Kecskemét factory.

Mercedes-Benz Manufacturing Hungary Ltd. has had another
successful year: its production last year was 4.1% higher than in 2016, and
more than 190,000 Mercedes-Benz compact cars were manufactured in its Kecskemét
factory.

The company's net sales last year exceeded EUR 3.5 billion
euros. The profits are entirely spent on newer investments in Hungary. As a
company and employer, the Mercedes-Benz factory paid a total of EUR 23 million
in tax and contribution to the Hungarian state and the Kecskemét municipality
in 2017.

According to Christian Wolff, Managing Director of
Mercedes-Benz Manufacturing Hungary Ltd., "the past year is not only a
milestone in terms of good business results, but also because we have launched
investments that serve future generations of both employees and buyers.
According to Hungarian workers, the Mercedes-Benz factory became the most
attractive domestic employer this year. This also proves that we are on the
right track and that the Kecskemét team has become a real and attractive
community."

A press statement released by the company points out that in
2017, the factory's new 99,000-square-meter bodywork shop was completed, where
the new A-Class is being produced as of this April. Last year, the preparatory
and landscaping works of the second factory of Mercedes-Benz began. As a result
of the EUR 1 billion investment, an effective manufacturing facility with state
of the art technology will be established by the end of the decade. The new
"full-flex" factory will be equipped with digital process control and
flexible production system for both front- and rear-wheel drive cars. The
second Mercedes-Benz plant will greatly contribute to the increase in the
number of employees and the number of suppliers and orders in the region.

Record year at Mercedes-Benz Hungária, as well

With sales of close to HUF 101 billion forints,
Mercedes-Benz's sales representation office in Hungary also closed a profitable
year in 2017: with 26% improvement on the 2016 figures.

The Managing Director of Mercedes-Benz Hungária Ltd., Jörg
Schmidt said that they are proud that Mercedes-Benz retained its market leader
position in the premium passenger car segment with the record results of 2017. “Besides
the efficient work of the staff, the arrival of new and renewed models, the
continuous development of high quality customer service and the expansion of
the dealer network also contributed to this success. Of course, this year, we
will also do our utmost to satisfy our customers. The brand's ability to renew,
the development of diverse services as well as our team and network hopefully
contribute to meeting the challenges successfully and to remain the flagship of
the automotive industry."

Last year, 1,462 small commercial vehicles were sold,
producing an extraordinary 82% increase. In the case of truck sales, Mercedes had
eight record months. Sales of commercial vehicles of over six tons gross grew
by 72% compared to 2016. Sales of original spare parts increased by 15.2%. The
company's network of partners employing more than 1,200 people worldwide has significantly
contributed to overcome sales records.