Mercedes-Benz Could Relocate A-Class Production to Kecskemét

Mercedes-Benz has extended production of the A-Class by two years. The German automotive giant’s entry-level models will now roll off the production line until 2028, instead of the originally planned year of 2026. This decision was first reported by Automobilwoche and then confirmed by Jörg Burzer, Mercedes’ board member for production. The measure is part of a broader production strategy that includes a possible relocation of capacity to Kecskemét (central Hungary).

Despite the originally planned phasing out of the A-Class with the introduction of the new CLA, the compact sedan remains very popular with customers, especially in Europe. A company spokesperson told the German journal that the A-Class has recently undergone extensive model updates and that production will therefore continue even after the CLA is introduced. In contrast, production of the B-Class, that also belongs to the compact family, will be discontinued next year.

Currently, both the A-Class and B-Class are produced at the Rastatt plant, with part of the A-Class also being manufactured in Hungary.

However, the extension of A-Class production is directly related to the capacity requirements for the new CLA that will be built in Rastatt on the new MMA platform.

Due to the high order volume for the electric version of the CLA, the Rastatt plant will have to switch to three-shift operation. The CLA electric sedan will be followed by a gasoline-powered counterpart, and later by an estate car and an SUV.

According to Automobilwoche, Mercedes could move all remaining A-Class production for the last two years to Kecskemét in order to free up the necessary capacity for the new models in Germany.

Press reports also emerged as early as April that the German automotive company might relocate jobs from Germany to Hungary. Over the next three years, the company has apparently planned to reduce production capacity in Germany by 100,000 units. At the same time, the capacity of the Hungarian plant in Kecskemét is to be increased by the same amount to 200,000 units per year.

Mercedes-Benz is also investing another 1 billion euros in the future of its Hungarian plant. The huge investment will create 3,000 new jobs and strengthen Kecskemét’s importance as an indispensable regional center in the Mercedes production network.

Via Automobilwoche.de, Featured image: Pexels