Mercedes-Benz opens a new plant in Hungary

Mercedes-Benz recently opened a brand new factory in Hungary. Who said that the European car market was in crisis?

The site is located in the city of Kecskemét and also costs a staggering €800-million. It will be the second home of the new Mercedes-Benz B-Class as it is also produced in Rastatt, Germany.

Meeting demand in Hungary

The news is huge to the company of Hungary as the new plant will naturally create more jobs and also boost their economy and car market. Viktor Orban, the Hungarian Prime Minister was present at the ceremony, which has more than 600 guests. He said “With the start of production in Kecskemét, the Mercedes-Benz offensive in the premium compact segment is shifting up a gear. With the production network of the Rastatt and Kecskemét plants, we now have the capacity to meet the demand from many existing and new customers in the premium compact segment.”

The Mercedes-Benz B-Class taking off

The new plant was opened as Mercedes-Benz are attempting to keep up with the sudden increase in demand for the Mercedes-Benz B-Class. The car has been sold more than 100,000 times since November 2011. That figures is set to heavily increase over the upcoming years.

Cleverly located

The location of the new Kecskemét plant was strategically placed. Collaboration between the plant in Rastatt will mean that the B-Class vehicle was can developed with more efficiency and in a more cost effective manner. The transport links between the two plants are state of the art. Components such as engines, transmission systems and body parts can be delivered directly by rail. It has been claimed that by the year 2013, fully completed vehicles will have the ability to be completely transported by rail between plants. This will save on costs as well ease the pressure on the Government’s C02 emission restrictions.

Labour costs cheaper

The labour costs in Hungry are a lot cheaper than that of Germany. Hourly wages could be more than halved in comparison.

Some of you may be surprised at the news as there is a huge crisis within the European car market at present. However the luxury car segment is currently booming, with capacity needing to be increased as demand is higher than cars produced at present. It is the complete opposite for mass car producers, as they capacity is higher than demand.

 

 

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