Mercedes to invest EUR 1 bn in C Hungary plant

Mercedes-Benz will spend 400 billion forints (EUR 1bn) to add new production lines to its plant in Kecskemét, in central Hungary, Péter Szijjártó, the minister of foreign affairs and trade, said on Thursday.

Mercedes will develop two new electric vehicle platforms, enabling it to produce higher end and value added models at the plant, the foreign ministry cited Szijjártó as saying in Kecskemét.

The government is supporting the investment, which will require significant infrastructure developments and create new jobs, with a 14 billion forint grant, the minister said. The government will also contribute to a training programme to be launched by Mercedes in Kecskemét, he added.

Szijjártó said Hungary was proud to be considered a key base by Mercedes, calling the country and the manufacturer’s 14-year partnership a “success story for both sides”.

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Mercedes’ latest investment shows that the Hungarian automotive industry is booming, Szijjártó said, noting that the sector’s output grew to 9,400 billion forints last year from 3,600 billion in 2010. And it has not lost any momentum, he said, arguing that the auto industry output came to a record 4,500 billion forints in the first five months of 2022.