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Despite Higher Inflation, Mercedes-Benz Profits in Kecskemét Increase

MTI-Hungary Today 2024.05.30.

The Mercedes-Benz plant in Kecskemét (central Hungary) is a key part of the global production network for Mercedes-Benz. In 2023, Mercedes-Benz Manufacturing Hungary Ltd. increased its turnover from nearly EUR 4B to over EUR 5B, with profit before tax rising from over EUR 96M to around EUR 103M.

According to Világgazdaság, despite facing higher inflation and increased supply chain costs, the company benefited from lower raw material prices and improved production costs.

The Mercedes-Benz plant in Kecskemét. Photo: Mercedes-Benz Gyár Kecskemét

To further enhance the plant’s role, Mercedes-Benz is investing over EUR 1B to expand the Kecskemét facility in 2024.

Modifications will be made to produce new MMA (Mercedes-Benz Modular Architecture) models, replacing current compact models. Additionally, a new battery plant for high-voltage batteries required for future electric models will be built, although the assembly steps will not involve raw material processing.

The expansion includes a new body and assembly plant to produce all-electric MB.EA (Mercedes-Benz Electric Architecture) models from mid-decade. The compact layout will reduce transport routes. The existing paint shop will be modernized to use renewable and carbon-neutral energy sources.

Mercedes-Benz EQB. Photo: Mercedes-Benz Türkiye

In 2023, the plant smoothly continued series production of current compact models, producing over 174,000 vehicles, including the first updated EQB model.

Procurement from Hungarian suppliers remained significant, with 42% of services, raw materials, and non-production capital expenditure sourced locally.

The Mercedes-Benz Academy’s Kecskemét center saw 115 secondary school students and 22 university students begin their academic year in 2023, offering seven professions for students of secondary school and seven higher education courses for university students.

Mercedes-Benz’s production sites have been carbon neutral since 2022, with plans to meet over 70% of energy needs with renewable sources by 2030, through expanded solar and wind energy use and new power purchase agreements. The Kecskemét plant employed 4,477 people as of 2023.

German Automotive Supplier Invests HUF 5 Billion to Upgrade Its Szombathely Plant
German Automotive Supplier Invests HUF 5 Billion to Upgrade Its Szombathely Plant

The company employs almost 5,000 people in Hungary, including more than 3,000 in Szombathely.Continue reading

Via Világgazdaság; Featured Image: Facebook / Mercedes-Benz Gyár Kecskemét


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