Mercedes-Benz will be investing €580 million (Rs 4,425 crore) by 2018 in its Kecskemet plant in Hungary to develop the next generation of compact cars.

The money will be invested in the technological development and the expansion of the location. In addition to a new body shop the factory's capacities will also be expanded.

“Kecskemet is and will remain a cornerstone of the compact vehicle production compound. Its expansion for the next generation of compact vehicles will further strengthen this role within the international production compound,” said Michael Gobel, head of Compact Vehicle Production at Mercedes-Benz Cars, at the groundbreaking of the new body shop.

Christian Wolff, CEO and site manager of Mercedes-Benz Manufacturing Hungary commented, “This investment is a clear sign of our commitment to this location, and offers good future prospects for the employees in Kecskemet. We will also invest in the improvement of the ergonomic and working conditions, as well as in the qualification of the workforce.”

Around €250 million (Rs 1,900 crore) will be spent on the new body shop, which is equipped with state-of-the-art technology. It is being built on an area of 99,000 square meters and has been designed to let in as much daylight as possible in order to create a bright working condition. Other parts of the plant, like the press shop, will also be expanded as part of the total investment. Moreover, the production line will receive various adjustments and robots for surface treatment. In the final assembly section for the next generation of compact vehicles, materials will be brought to the assembly line in pre-picked baskets of goods. This will be done completely autonomously by driverless transport vehicles with prepared baskets of goods from the logistics and picking zones. This eliminate the need for workers to go get the materials themselves and also helps them to determine if all components have been installed

The Mercedes-Benz plant in Kecskemet employs more than 4,000 people. Over 180,000 compact Mercedes-Benz vehicles were produced in 2015. In February 2015, the plant rolled out its landmark 500,000th vehicle off the production line since the plant opening on 29 March 2012. 

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