Mercedes announces biggest investment of the year
The German automaker will install new production lines in Kecskemét as part of a HUF 400 billion mega-investment.
Mercedes is adding new production lines to its Hungarian assembly and bodywork plant, worth HUF 400 billion.
Speaking at the announcement of the investment at Mercedes-Benz Manufacturing Hungary Kft, Minister of Foreign Affairs and Trade Péter Szijjártó said that the development will enable the plant to produce two new electric platforms, bringing higher-end and technologically value-added models to Hungary.
The project will involve significant infrastructure improvements and job creation, and will be supported by the state with HUF 14 billion. Mercedes is also launching a training program in Kecskemét, to which the government will also contribute financially, he said.
According to Szijjártó, the sector’s production value was HUF 3.6 trillion in 2010 and HUF 9.4 trillion in 2021. And the momentum has not slowed down, with the figure reaching a record HUF 4.5 trillion in the first five months of 2022.
The sector, which employs 155,000 Hungarians, has a 90 percent export share. Hungary is ranked 20th in the world in automotive exports, although only 95th in terms of population, Szijjártó said.
The government has worked hard to make Hungary one of the most important locations for the electric car transition, he said, adding that apart from Germany and China, Hungary is the only country with production capacity for all three major German premium car brands.
The Kecskemét plant will strengthen its role in the global production network by integrating new models into series production, with production of the new MMA platform (Mercedes Modular Architecture) starting in 2024 and a pure electric model of the MB.EA platform (Mercedes-Benz Electric Architecture) starting in 2025.
