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Mercedes and Hungary Sign Cooperation Agreement

October 27, 2008


Mercedes-Benz and Hungary Government Sign Cooperation Agreement for New Plant in Kecskemét

  • Contract signing to create additional production capacity in premium compact car segment
  • Investment of approximately €800 million
  • Start of production in 2012


Budapest – Rainer Schmückle, Chief Operating Officer of Mercedes-Benz Cars, and Gordon Bajnai, Hungarian Minister for National Development and Economy, signed the cooperation agreement for the construction of a new Mercedes-Benz plant in Kecskemét in presence of Ferenc Gyurcsány, Prime Minister of Hungary, and Dr. Gábor Zombor, the Mayor of the city of Kecskemét.

The signing ceremony took place in the Hungarian Parliament where representatives of Mercedes-Benz and the Hungarian government agreed upon the cornerstones for the construction of the new plant. This includes an investment of €800 million and the creation of up to 2,500 jobs. The plant will manufacture over 100,000 compact cars annually beginning in 2012.

“By choosing this region, your country, the city of Kecskemét and the people there are becoming part of the history of Mercedes-Benz. And we believe in the performance of the location and the employees. Because, no matter where a Mercedes comes from, it must always meet the highest quality standards,” Schmückle said.

Mercedes-Benz is building the plant in order to create additional production capacity in the compact car segment, where the model range will be expanded from two to four vehicles. The plant contributes to the profitability of the product portfolio extension.

Kecskemét is located in the Puszta region, approximately 80 km southeast of Budapest on the M5 freeway which runs north to south through Hungary. In association with the plant in Rastatt, two vehicles from the next generation of today’s A and B Class are to roll off the production line in Kecskemét from 2012. At the Rastatt plant, which in the future will produce three vehicles, investments of €600 million are planned.