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Automotive Industry
Mercedes-Benz will move production of its entry-level A-class series from Germany to Hungary starting in the second quarter, a company spokesperson said on Tuesday.
The German luxury automaker plans to relocate A-class manufacturing from its Rastatt facility in Germany to its plant in Kecskemet, Hungary.
According to the spokesperson, this decision will create space at the Rastatt location for the launch of future planned models.
The news was first reported by industry publication Automobilwoche.
The German carmaker’s facilities in Germany and Hungary operate as part of a flexible production network that allows the company to shift manufacturing based on plant capacity.
Production costs in Hungary are generally lower compared to Germany. Other major automakers with manufacturing presence in Hungary include BMW, Audi, and Chinese electric vehicle manufacturer BYD.