Mercedes-Benz Relocates A-Class Production to Kecskemét

Mercedes-Benz is restructuring its European production network. As confirmed by the company and the Hungarian government, production of the A-Class will be gradually relocated to Hungary starting this year. While the German automotive giant talks about increasing efficiency, Hungarian politicians are celebrating the relocation as a historic economic triumph.

Starting in the second quarter of 2026, Mercedes-Benz will move production of the A-Class from Germany to Kecskemét, central Hungary. According to a report in Automobilwoche, citing company sources, this move is primarily intended to free up capacity at the German plant in Rastatt. In the future, new, strategically important models are to roll off the production line there.

A company spokesperson told the German portal that the plants in Germany and Hungary operate as part of a “flexible production network.” This enables the group to adapt production agilely to the respective capacity utilization of the plants. However, costs are also likely to be a key factor in the decision.

Mercedes-Benz confirmed that production costs in Hungary are significantly lower than at the German site.

Hungarian Foreign Affairs and Trade Minister Péter Szijjártó announced the news on Tuesday on his social media page. “The facts speak for themselves,” said the politician. In just ten years, the plant in Kecskemét has become the largest Mercedes-Benz factory in Europe, surpassed worldwide only by the capacities in China, he explained.

In recent years, the Kecskemét site has become a key pillar in the global Mercedes-Benz network,

that is reflected not least in the employment of over 5,000 people and the celebration of the production of the two millionth vehicle in October 2024,

Péter Szijjártó recalled.

The plant is now characterized by an enormous technological range, as highly efficient combustion engines and plug-in hybrids roll off the production line alongside fully electric models, he added. Beyond pure manufacturing, the company is currently strengthening its presence in Hungary by establishing its first research and development center that will further enhance the site’s technological capabilities, said the minister.

Mercedes-Benz A 220 4MATIC (2022). Photo: Wikimedia Commons/Alexander-93

As Hungary Today reported, despite the positive news, there are temporary adjustments to operations. The company announced a temporary switch to single-shift operation for the first quarter of 2026. The reasons for this are extensive renovation work and preparations for the new MMA and MB.EA platforms. In particular, the gradual start of series production of the new, fully electric GLB requires technical adjustments in the factory halls. However, according to Mercedes-Benz, this shift change will have no direct impact on the permanent workforce.

For the Hungarian government, the expansion of the Mercedes-Benz portfolio (A-Class, C-Class, electric GLB) is proof that its economic policy is on the right track. Péter Szijjártó described Hungary as one of the “main winners of the new global economic era.” He emphasized that political stability and a competitive tax system are decisive factors in prevailing against other major powers in the global “cutthroat battle” for production capacity.

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