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New Mercedes-Benz Plant Completed in Kecskemét

Hungary Today 2025.05.29.

The Mercedes-Benz factory in Kecskemét (central Hungary) has developed dynamically over the past decade and now provides a livelihood for nearly 5,000 Hungarian families. The German automotive giant’s new plant has now been completed with production planned to start there next year, Világgazdaság reports.

The new factory, where production of premium vehicles will begin next year, has been completed, giving Mercedes the largest vehicle manufacturing capacity in Hungary, announced István Joó, government commissioner and CEO of the Hungarian Investment Promotion Agency (HIPA), on social media. The combination of local expertise and German engineering precision is outstanding not only in Hungarian industry but also in Mercedes’ global production network, which is why the Kecskemét plant has been named the best Mercedes factory for the fifth time in a row, he added.

Mercedes-Benz is investing a billion euros in the newest plant, creating three thousand new jobs.

This gigantic investment makes the company unavoidable in Kecskemét even on a regional level.

Jens Bühler, director of Mercedes-Benz Manufacturing Hungary Kft., previously spoke to Világgazdaság about the transition to new models and electric cars. He pointed out that the process is like replacing the engine of a vehicle traveling at 100 kilometers per hour: they are entering a completely new segment, the so-called core segment, while maintaining daily production.

It is no coincidence that Mercedes has to face this enormous challenge in Kecskemét. Over the years, the factory here has developed from an apprentice to a master. However, there is still a long way to go: they are doubling their production area, gradually moving away from fossil fuels, and their strategic goal is to create a carbon-neutral new car fleet.

Fact

Foreign Minister Péter Szijjártó said at a conference recently that the Hungarian automotive industry has managed to maintain its performance despite global difficulties and remains the driving force of the domestic economy. He recalled that BMW will start production in Debrecen (eastern Hungary) in September, while Mercedes will create its largest plant outside China by connecting its two factories in Kecskemét (central Hungary). In addition, Audi is also working at full capacity in Győr (northwestern Hungary), Stellantis in Szentgotthárd (western Hungary) is struggling to keep up with orders, and Suzuki is carrying out a complex factory development project in Esztergom (north of Budapest) with government support.

He also mentioned that China’s BYD is building its first European factory in Hungary, and five of the ten largest electric battery manufacturers in the East have decided to set up operations here. “Soon, our annual capacity will be more than one million cars and more than two million engines, and we will have the world’s second-largest electric battery manufacturing capacity,” the Minister said.

Mercedes-Benz Plans to Expand Its Second Largest European Plant
Mercedes-Benz Plans to Expand Its Second Largest European Plant

Viktor Orbán recieved Ola Källenius to review Mercedes-Benz's Hungarian investments.Continue reading

Via Világgazdaság, Featured photo via Pixabay


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