Mercedes invests another €1 billion in Hungarian plant

The car industry is one of the most important pillars of the Hungarian economy

editor: REMIX NEWS
author: Magyar Hírlap
Christian Wolff, Mercedes AG's director for production and supply chain (L), and Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó. (MTI/Csaba Bús)

The Hungarian state is supporting the €1 billion investment of Mercedes in Kecskemét with a total of HUF 14 billion (€27.6 million) since it creates jobs, Minister of Foreign Affairs and Trade Péter Szijjártó said in Kecskemét at the announcement of the German car maker’s investment.

He added that the plant will be able to produce two new electric vehicle platforms, so the company will bring the production of higher-end and technologically added-value types to Hungary.

Szijjártó said it is a great pride that Mercedes sees Hungary as a key location, adding that the past 14 years of cooperation have been a success story for both parties. He said the current investment clearly shows the growth of the Hungarian automotive industry, which is not just a political statement but one supported by facts. The production value of the sector in 2010 was HUF 3.6 trillion, while in 2021 it will be HUF 9.4 trillion. And the momentum has not decreased, Szijjártó said, with the figure reaching a record HUF 4.5 trillion in the first five months of this year.

Szijjártó said the automotive sector, which employs 155,000 Hungarians, works with an export ratio of 90 percent, so Hungary, although it is only 95th in the world in terms of population, is 20th in terms of automotive exports.

In Hungary, German companies form the largest investor community, and bilateral trade turnover reached €60 billion last year, which is considered a record; meanwhile, its volume increased by 7 percent in the first four months of this year.

The minister signed a memorandum of understanding with factory manager Christian Wolff; the board member responsible for production and supply chain, Jörg Burzer; and the mayor of Kecskemét, Klaudia Szemereyné Pataki.

Mercedes-Benz said in a statement that the investment in Kecskemét is part of the company’s 2022-2026 business plan. The focus of the investment is the further flexibility of production lines, digitalization, and sustainability. The Hungarian state and the city of Kecskemét both support the project, they indicated.

The Kecskemét factory will strengthen its role in the global production network by integrating new models into series production; the models of the new MMA platform (Mercedes Modular Architecture) will start in 2024, and the purely electric models of the MB.EA platform (Mercedes-Benz Electric Architecture) will start in 2025.

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