Daimler Inaugurates €800 Million Plant in Hungary

Daimler started production at its new passenger car plant in Kecskemét today. Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, Plant Manager Frank Klein and Hungarian Prime Minister Viktor Orbán welcomed around 600 Hungarian and German guests at the opening ceremony.

At the press conference, Dr. Dieter Zetsche stressed the importance of the new location: “With the start of production in Kecskemét, the Mercedes-Benz offensive in the premium compact segment is shifting up a gear. With the production network of the Rastatt and Kecskemét plants, we now have the capacity to meet the demand from many existing – and new – customers in the premium compact segment.”

In this respect, Zetsche announced that another model series would also be coming to the new location – the 4-door coupé of the new generation of Mercedes-Benz compact cars. As part of the ongoing plant development, headcount is to be increased from around 2,500 to more than 3,000 by the end of this year.

Zetsche expressed his special thanks to Daimler’s Hungarian partners in the political, administrative and social areas: “They welcomed us like a friend and actively supported us through every stage of the plant development. Their tireless commitment was one of the main reasons for the positive outcome of this project, and will continue to be a key factor in the success of the Mercedes-Benz Kecskemét plant.”

The first vehicle from the plant is to be auctioned off. The proceeds will be donated to the Hungarian aid organization Nemzetközi Gyermekment ő Szolgálat (International Children’s Safety Service).

The first product in the new generation of Mercedes-Benz compact cars, the B-Class is now built at the new plant. It went into production at the plant in Rastatt, Germany back in September 2011. With this increased production capacity, it is now possible to fully address the overwhelming customer response: Mercedes-Benz has already received more than 100,000 orders for the B-Class since its launch in November 2011.

In total, Daimler has invested €1.4 billion in production of the new generation of Mercedes-Benz cars: €800 million for construction of the Kecskemét plant and €600 million for expansion of the Rastatt plant.
The joint production of the B-Class in Rastatt and in Kecskemét enables flexible and optimum management of both plants’ capacity utilization. This volume flexibility is a key factor of the economic efficiency of the production network. In addition, the joint architecture of the new generation of compact cars ensures complete type flexibility in production: in principle, all models at the location can be produced on the same assembly line, in all variants of the product range and in any sequence.
The production network also includes the efficient logistical link between the two plants, which are part of the Daimler Rail Net network. The recently opened east-west rail link supplements the existing north-south links between the powertrain and vehicle plants in Germany. In particular, body parts, engines, transmission systems and other components are delivered from the German locations to Kecskemét by rail. From 2013, most of the completed vehicles will also be transported by rail in the opposite direction. Overall, when completed, this will save up to 60,000 tons of CO2 per year.

The plant in Kecskemét was the first passenger car production plant in the Group to be entirely digitally planned and to receive three-dimensional backup. This was an essential requirement for the perfectly-timed workflows and adherence to all deadlines and cost targets.
State-of-the-art, environmentally sound technology is used at the plant. For instance, the paint shop is one of the most modern and resource-friendly facilities of its kind with its innovative dry separation method. The overall energy concept is particularly geared towards efficiency, e.g. the ventilation system of the production shops with heat recovery, the use of highly efficient strip-lighting systems for illumination and the use of two district heating plants to supply electricity and heat.