In a strategic move to optimize its European manufacturing network, Mercedes-Benz has announced the relocation of A-Class production from its Rastatt plant in Germany to Kecskemét in central Hungary. The transition, set to begin in the second quarter of 2026, underscores the company’s focus on efficiency and adaptability amid evolving market demands. While Mercedes-Benz emphasizes operational flexibility, Hungarian officials are hailing the decision as a major economic victory.
The relocation aims to free up capacity at the Rastatt facility, allowing it to prioritize the production of new, high-priority models in the future. A Mercedes-Benz spokesperson described the German and Hungarian plants as part of a „flexible production network,” enabling the company to respond nimbly to varying plant utilizations. Cost considerations also play a significant role, with production expenses in Hungary notably lower than in Germany, as confirmed by the automaker.
Hungarian Foreign Affairs and Trade Minister Péter Szijjártó broke the news on social media, framing it as a testament to Hungary’s growing industrial prowess. „The facts speak for themselves,” Szijjártó stated, noting that in just a decade, the Kecskemét plant has evolved into Mercedes-Benz’s largest factory in Europe—surpassed globally only by its operations in China.
Established as a key hub in the company’s global ecosystem, the Kecskemét site now employs over 5,000 people and marked a milestone in October 2024 with the production of its two millionth vehicle. The facility boasts a diverse technological portfolio, producing everything from efficient combustion engines and plug-in hybrids to fully electric models. Adding to its capabilities, Mercedes-Benz is currently establishing its first research and development center in Kecskemét, which is expected to further elevate the site’s innovation potential.
Despite the expansion, the plant faces short-term adjustments. Mercedes-Benz has planned a temporary shift to single-shift operations during the first quarter of 2026 to accommodate extensive renovations and preparations for new platforms, including the MMA and MB.EA architectures. This includes technical upgrades for the series production of the all-electric GLB model. The company assures that these changes will not affect the permanent workforce.
For the Hungarian government, the addition of A-Class production—alongside existing lines for the C-Class and the upcoming electric GLB—validates its economic strategy. Szijjártó positioned Hungary as one of the „main winners of the new global economic era,” attributing success to political stability and a competitive tax system in the fierce international competition for manufacturing investments.
This relocation not only strengthens Mercedes-Benz’s footprint in Eastern Europe but also highlights Hungary’s emergence as a prime destination for automotive giants seeking cost-effective, high-tech production bases. As the industry shifts toward electrification and sustainability, the Kecskemét plant is poised to play an even more pivotal role in the company’s future lineup.
