Mercedes Increases Production Capacity in Hungary
New factory in Kecskemét set to double production capacity for the automotive giant.
Mercedes-Benz is set to begin series production at its new factory in Kecskemét, Hungary, at the beginning of next year, marking a significant increase in the company's manufacturing capacity in the country.
Péter Szijjártó, Hungary's Minister of Foreign Affairs and Trade, announced this development on Tuesday in Stuttgart.
The company commenced its operations in Hungary in 2012, and last October it celebrated the completion of its two-millionth vehicle at the existing plant.
According to Szijjártó, the ongoing development in Kecskemét is of a similar scale to the initial construction of the plant in 2012, with the new facility expected to produce 400,000 vehicles annually, ultimately reaching a total of one million.
This capacity increase will allow Hungary to join an elite club of five European countries capable of such automotive production.
Despite a notable decrease in profits last year, attributable in part to declining demand in Germany and China, the company is strategizing on enhancing production efficiency.
Recently, it was reported that Mercedes plans to increase the proportion of its production based in lower-wage countries from 15% to 30%.
Hungary, particularly the Kecskemét factory, figures prominently in this plan due to its significantly lower production costs, estimated to be around 70% less than in Germany, primarily due to decreased wage expenditures.
Szijjártó further noted that Mercedes will introduce the production of two new families of car models based on new platforms to Hungary.
Ongoing negotiations regarding these developments are expected to elevate the position of the Hungarian automotive sector within both the European and global automotive industries.
Péter Szijjártó, Hungary's Minister of Foreign Affairs and Trade, announced this development on Tuesday in Stuttgart.
The company commenced its operations in Hungary in 2012, and last October it celebrated the completion of its two-millionth vehicle at the existing plant.
According to Szijjártó, the ongoing development in Kecskemét is of a similar scale to the initial construction of the plant in 2012, with the new facility expected to produce 400,000 vehicles annually, ultimately reaching a total of one million.
This capacity increase will allow Hungary to join an elite club of five European countries capable of such automotive production.
Despite a notable decrease in profits last year, attributable in part to declining demand in Germany and China, the company is strategizing on enhancing production efficiency.
Recently, it was reported that Mercedes plans to increase the proportion of its production based in lower-wage countries from 15% to 30%.
Hungary, particularly the Kecskemét factory, figures prominently in this plan due to its significantly lower production costs, estimated to be around 70% less than in Germany, primarily due to decreased wage expenditures.
Szijjártó further noted that Mercedes will introduce the production of two new families of car models based on new platforms to Hungary.
Ongoing negotiations regarding these developments are expected to elevate the position of the Hungarian automotive sector within both the European and global automotive industries.
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