Daimler, the parent business of Mercedes-Benz, will invest one billion euros ($1.11 billion) to construct a 2nd manufacturing plant in Hungary. The factory, which will begin producing cars by the end of the decade, will develop 2,500 new jobs, the automaker states.
This is the 2nd financial investment Daimler has actually announced this year for its Hungarian site located in Kecskemet, a city approximately 56 miles from Budapest. In April, the company stated it would invest around 580 million euros ($647.6 million) to expand and upgrade its existing plant, which produces compact vehicles.
The decision to develop a second plant in Kecskemét suggests Daimler’s bet on Hungary, a nation with lower incomes than Germany and other European nations, is settling. The automaker invested more than 800 million euros (at the time about $1.07 billion) to construct the initial plant there– its very first new factory in more than 10 years.
The 2nd plant will be a so-called “flex-plant,” suggesting it will have the ability to produce cars with different architectures, an industry term for different type of cars such as bigger sedans in addition to compact automobiles. The automaker does not define which models will be produced here other than that they will be front and rear-wheel drive cars.
This plant will have a body shop, a paint shop, a final assembly, and a provider park. Preparations for the site will start this year.
