Daimler Expands Hungarian Plant image

Daimler plans to expand its facility in Hungary and double production to 300,000 vehicles annually by 2015.

“Yes, it’s true we can expand the production line, but no decision has been taken on this matter,” said a company spokesman.

Daimler has a plant in Kecskemet, 100 kilometers of Budapest, where it began production of its Mercedes B class cars in March 2012. The automaker invested 800 million euro to build the facility, one of the most important investments made in this country in the last years. Daimler’s Kecskemet plant and Audi’s Gyor car assembly facility are of utmost importance for Hungary’s economy which relies on exports.

Daimler currently manufactures the B Class compact and it plans to add a new coupe from its CLA models beginning 2013. Napi Gazdasag said that the company has already begun at the Kecskemet plant the trial production of the new four-door coupe. The expansion of the facility will cost the automaker several tens of billions of forints and the process is expected to begin next year.

Daimler has two tough competitors, Audi and BMW, who not only earn more per each car sold but also sell more vehicles, due to their greater inroads into China.