18 June 2008 | Source: just-auto.com editorial team
Mercedes-Benz is to build a new plant in Hungary and extend its Rastatt factory in Germany, widening its entry-level compact car line and targeting eastern European markets.
The automaker will spend EUR800m on the new factory in Kecskemét
, about 50 miles (80km) from the outskirts of Budapest, creating about 2,500 new jobs.
"We are planning a new plant in Hungary to boost our competitiveness and to gain access to the potential of the eastern European markets
," Daimler chairman Dieter Zetsche said in a statement.
Representatives of Daimler, Hungary and Kecskemét would sign a memorandum of understanding for the new plant in the coming weeks, Daimler said.