Mercedes-Benz announced it will move production of its A-Class compact model from Germany to Hungary as part of a broader effort to optimize manufacturing efficiency and reduce costs. The shift will relocate assembly from the company’s Rastatt plant to its state-of-the-art facility in Kecskemét, Hungary, which has become a central hub for compact car production in recent years. The German automaker cited the strong performance of its Hungarian operations and the plant’s strategic position within Europe as key factors in the decision.
The move reflects Mercedes-Benz’s ongoing adaptation to changing market conditions, including evolving demand for compact vehicles and the increasing focus on electric mobility. By consolidating production, the company expects to streamline logistics and improve agility in responding to regional consumer trends. The Kecskemét plant, already producing models such as the CLA and CLA Shooting Brake, is expected to expand its workforce and add new technology to support the transition.
While the decision is seen as a boost for Hungary’s growing automotive sector, it has sparked concern in Germany about potential job impacts and the long-term future of the Rastatt plant. Mercedes-Benz has reassured employees that it will maintain a strong manufacturing presence in Germany, focusing on higher-end electric models and next-generation vehicle platforms. The shift underscores the broader restructuring underway across the European auto industry as manufacturers balance cost pressures with the transition to electrification.
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(Source: Hungarian Investment Promotion Agency | Automotive World)
