Daimler Opens First Mercedes Plant in Eastern Europe

March 30, 2012
The state-of-the-art plant is due to build up to 120,000 cars annually year and employ at least 3,000 people at full capacity.

In a rare sign of foreign investor confidence in a country at odds with the European Union, Daimler (IW 1000/15) opened its first Mercedes-Benz factory in eastern Europe on March 29.

"We are making history today: less than four years after the location decision was made," the plant's managing director Frank Klein said on the occasion of the official opening.

The state-of-the-art plant in Kecskemet, 45 miles southeast of Budapest, is due to build up to 120,000 cars each year and employ at least 3,000 people at full capacity.

Hungary beat rival sites in Poland and Romania to strike a deal with Mercedes-Benz owner Daimler in 2008.

Construction on the 800-million-euro (US$$1.06-billion) factory began in 2009 and test production kicked off last year.

B-Class compacts have been rolling off the assembly line since then, but Mercedes said it plans to expand production to other models in the near future.

The plant could give a significant boost to a struggling Hungarian economy fighting to avoid recession. Mercedes-Benz's investment is one of the largest in Hungarian history, aside from an Audi car factory in Gyor, west of Budapest.

Prime Minister Viktor Orban, who attended the's opening, has courted foreign investment even as he has resisted EU pressure to reverse reforms that critics say give him a dangerous amount of power and undermine democracy.

Orban is seeking an estimated 15-20 billion-euro stand-by loan from the EU and International Monetary Fund, but Brussels insists Budapest must change some of its new laws before aid talks can begin.

Copyright Agence France-Presse, 2012

See Also
Daimler Trucks Adding Jobs, Second Shift at Oregon Factory

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

Adopting an Open Ecosystem: The Way Forward for Frontline Operations

March 11, 2024
Today's manufacturing tech stack thrives on connectivity, integrating new and legacy players for a seamless operation - not on monolithic systems. Embrace the future of frontline...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!