With the addition of new production halls, the plant has become Mercedes-Benz’s largest factory in Europe and its second largest worldwide.

The expansion is expected to substantially increase output, with overall production capacity set to double.

It also marks the launch of series production for Mercedes-Benz’s first fully electric entry-level model, the new electric C-Class, which will now be built in Hungary.

The inauguration ceremony brought together key figures from both government and industry, including Prime Minister Péter Magyar and Mercedes-Benz Group CEO Ola Källenius, alongside senior executives such as Michael Schiebe, responsible for production, quality and supply chain management, and Christian Dickert, Managing Director and Plant Manager of Mercedes-Benz Manufacturing Hungary.

In his address, the prime minister described the development as an indication of Hungary’s ability to host large-scale, strategically important industrial investments.

He noted that the expansion strengthens the Kecskemét plant’s position within Mercedes-Benz’s international production network while underlining its importance to the Hungarian economy.

He also outlined the government’s approach to attracting and retaining investors, pointing to a predictable economic environment, competitive taxation, modern infrastructure and a skilled workforce.

At the same time, he emphasised that cooperation must be balanced, with companies expected to comply with local regulations, treat employees fairly and increase the involvement of Hungarian suppliers.

The prime minister added that supporting domestic small and medium-sized enterprises remains a priority, particularly by helping them integrate into international automotive supply chains through digitalisation, automation, artificial intelligence and targeted supplier development programmes.

Opening his speech on a historical note, he recalled Hungarian-born automotive engineer Béla Barényi, one of the most influential figures in vehicle safety and a key contributor to Mercedes-Benz’s engineering legacy.

According to a well-known anecdote, Barényi told company executives during his 1939 job interview that they were “doing everything wrong” before presenting his vision for significantly safer vehicles.

The story, he said, illustrates both Barényi’s insight and the importance of leadership that recognises talent and remains open to new ideas.

Christian Dickert highlighted the role of the local workforce in delivering the expansion, describing employees in Kecskemét as highly committed and adaptable.

He said their flexibility, professionalism and teamwork had been evident throughout the project, and added that the new facilities provide a strong basis for future growth.

Reflecting on his first months at the plant, he noted that he had been particularly impressed by the expertise of the Hungarian team.

Ola Källenius also addressed the audience, pointing to customer focus, innovation and competitiveness as central to the company’s strategy.

He said the Kecskemét plant reflects these priorities and quoted computer scientist Alan Kay: “The best way to predict the future is to create it,” adding that the work carried out by employees in Hungary reflects this approach in practice.

Looking ahead, Mercedes-Benz expects the Kecskemét site to play an increasingly important role in its production strategy. In addition to manufacturing the electric C-Class, the expanded plant is projected to offer a significant cost advantage.

The company estimates that production costs in Kecskemét are around 70% lower than at comparable facilities in Germany, positioning it among the most competitive locations in its European network.

Currently producing more than 100,000 vehicles annually, the plant is expected to scale up significantly, with long-term plans targeting an annual output of around 350,000 vehicles.

The development further reinforces Kecskemét’s status as a major industrial centre in Hungary and as a key production hub within Mercedes-Benz’s global operations.

MTI Stock Photo

Source: MTI – Hungary’s national news agency since 1881.

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