Daimler aims to improve production at its Hungary plant

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Daimler said it would increase the investment in its Mercedes-Benz plant in Hungary to improve the output efficiency.

The German car manufacturer said in December that it was planning to expand its logistics hall and improve supply of parts at its production lines in the Hungarian unit, with a 15-million-euro investment, with construction work set to start in early 2016 and completion scheduled for the summer. Daimler is now announcing a further 250-million-euro investment (280 million dollars) in the Kecskemet factory to expand some of the facilities, with the plan to speed up the production of the next generation Mercedes-Benz compact models. “Thanks to the investment in new, highly modern technology, the company will increase its production efficiency and flexibility,” the automaker stated.

The Kecskemet factory contributes to the Mercedes-Benz production by building the B-Class, the CLA and the CLA Shooting Brake, with the latter two models being put together exclusively in Hungary for all markets worldwide. The three pointed star brand’s compact cars accounted last year for around one third from the brand’s total global volume. In addition to Kecskemet, Daimler’s compact-car network includes the lead plant in Rastatt, Germany, and BBAC in Beijing, China, where the GLA small SUV is produced for the local market. Some recent reports in the Polish and German press said the German automaker was now considering building a new car factory and an engine plant in Poland.