Mercedes-Benz expands Kecskemét plant in Hungary and launches new electric C-Class production

Mercedes-Benz has doubled the production area of its Kecskemét plant in Hungary, transforming it into one of the largest facilities in the company’s global manufacturing network. The expansion increases the site’s footprint from 200 to 440 hectares, making it Hungary’s largest automotive production site and a key hub within Mercedes-Benz’s international operations. The €1 billion investment, part of the 2022–2026 business plan, focuses on digitalization, flexibility, and efficiency, reinforcing the plant’s role in the company’s long-term competitiveness and sustainability strategy. The expansion includes two new halls for body and assembly lines, a second press shop, a state-of-the-art paint shop, and a battery assembly facility. With over 5,000 skilled employees, the Kecskemét plant is already the largest employer in the region. The site’s workforce played a central role in the successful ramp-up of the new electric Mercedes-Benz C-Class, the first battery-electric core model produced in Kecskemét as part of the company’s electrification strategy. The plant now operates under a dual production model: the existing hall supports flexible manufacturing of both internal combustion and battery-electric models on shared lines, while the new hall is dedicated to full EV production. This setup allows rapid scaling of output in response to market demand. The plant’s role is further strengthened by the exclusive production of the upcoming compact version of the G-Class, which will be built solely in Kecskemét. The site also supports flexible production axes with other German plants, such as Bremen, enabling shared manufacturing of models like the electric GLC. Digitalization is a cornerstone of the upgraded facility. The new halls integrate advanced manufacturing technologies, ergonomic workstations, and AI-driven applications, all underpinned by the Mercedes-Benz Cars Operations 360 (MO360) digital ecosystem. The MO360 Data Platform connects production, quality, and supply chain data across locations, providing real-time transparency for employees worldwide. A highlight of the digital upgrade is the Digital Factory Twin, a complete virtual replica of a new assembly hall built using NVIDIA Omniverse. This virtual model enables simulation, optimization, and control of production processes in a digital environment before physical implementation. The expansion was inaugurated in the presence of high-ranking guests, including Péter Magyar, Hungary’s Prime Minister, and István Kapitány, Hungary’s Minister of Economic Development and Energy. Speaking at the event, Michael Schiebe, Member of the Board of Management of Mercedes‑Benz Group AG responsible for Production, Quality and Supply Chain Management, emphasized the strategic importance of Kecskemét: “The expansion of the Kecskemét plant increases the resilience and flexibility of our global production network. The site defines the future of our manufacturing: intelligent, connected, digital, and consistently focused on efficiency, quality, and sustainability. This allows us to produce models like the GLB and the new electric C-Class competitively while strengthening the entire production network.” Christian Dickert, Head of the Mercedes-Benz Kecskemét plant, added: “The expansion and the start of production for the new electric C-Class are the result of a strong team effort. Our employees have prepared and implemented the ramp-up with great commitment. Kecskemét demonstrates impressively how modern production, high quality, and social responsibility go hand in hand in the region.” The Kecskemét plant now stands as a flagship for Mercedes-Benz’s transformation into a digitally driven, flexible, and sustainable manufacturing network, supporting both current and future electric vehicle programs.