In an effort to expand its entry-level offerings, Mercedes-Benz has announced that it will open a new plant in Kecskemet, Hungary. In addition to producing Mercedes’ current lineup of entry-level cars – the A-Class and B-Class – the German automaker plans to produce two new models at the plant.
According to Automotive News, the Hungarian plant will produce a new entry-level SUV based on the B-Class, with Mercedes likely adding a new small coupe in the not-so-distant future. The small SUV is said to compete with the BMW X1 while the coupe will likely take on BMW ’s 1-series.
The new plant will cost Daimler 800 million euros and will create 2,500 new jobs. “We are planning a new plant in Hungary to boost our competitiveness and to gain access to potential of the Eastern European markets,” Daimler CEO Dieter Zetsche said in a statement.
In addition to the new plant, the German automaker also announced that it will invest 600 million euros in its small car plant in Rastatt, Germany.
