Published by Global Banking & Finance Review®
Posted on January 6, 2026
1 min readLast updated: January 20, 2026
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Mercedes-Benz will relocate A-class production from Germany to Hungary, optimizing costs and allowing space for new models at the Rastatt plant.
BERLIN, Jan 6 (Reuters) - Mercedes-Benz will relocate production of its entry-level A-class series from Rastatt in Germany to its Hungarian plant in Kecskemet from the second quarter, a spokesperson for the company said on Tuesday.
The decision creates space in Rastatt for the launch of future planned models, the spokesperson added.
Industry news outlet Automobilwoche first reported on the decision.
The German carmaker's German and Hungarian sites are part of a flexible production network that allows production to move according to plant capacity.
Production costs are generally lower in Hungary, where peers BMW and Audi also have a presence, as well as Chinese EV maker BYD.
(Reporting by Rachel More, editing by Thomas Seythal)
Manufacturing is the process of converting raw materials into finished goods through various methods and techniques, often involving machinery and labor.
Production relocation refers to the process of moving manufacturing operations from one location to another, often to reduce costs or improve efficiency.
Cost management involves planning and controlling the budget of a business or project to ensure that expenses do not exceed the allocated budget.
The automotive industry encompasses the design, development, manufacturing, marketing, and selling of motor vehicles, including cars, trucks, and motorcycles.
A supply chain is a network of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer.
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