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Mercedes-Benz are investing in their main compact car plant - home of the B-Class, CLA and CLA Shooting Brake.

Mercedes-Benz is investing in overseas production with the announcement that parent company Daimler will be investing 580 million into its Kecskemét plant in Hungary for technological development and expansion.

Kecskemét 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 Göbel, Head of Compact Vehicle Production at Mercedes-Benz Cars.

Approximately €250 million will be spent on a new 99,000 sq. metre bodyshop with cutting-edge technology. The press shop will also be expanded, whilst the production line will also receive improvements and new robotic technology for surface treatment.

In the final assembly area of the plant, for the next generation of compact vehicles, materials will be delivered to the assembly line in pre-picked packages from logistics areas and picking zones by driverless vehicles - eliminating the need for workers to fetch components themselves.

The Kecskemet employs was opened in 2012 as the first Mercedes-Benz manufacturing plant outside of the brand's native Germany, and employs around 3,500 people. It currently produces three of Mercedes' compact car generation: B-Class, CLA and CLA Shooting Brake. It is expected the plant's expansion will allow it to also produce the next generation of Mercedes compact cars including the new A-Class.

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