Higher Inflation Yields Increased Profit for Mercedes-Benz in Kecskemét
Mercedes-Benz’s Plant in Kecskemét Boosts Turnover to Over €5B in 2023
The Mercedes-Benz plant in Kecskemét, located in central Hungary, has played a crucial role in the global production network for Mercedes-Benz. In 2023, Mercedes-Benz Manufacturing Hungary Ltd. saw a significant increase in turnover, surpassing EUR 5B, up from nearly EUR 4B the previous year. The profit before tax also experienced growth, rising from over EUR 96M to around EUR 103M.
Despite facing challenges such as higher inflation and increased supply chain costs, the company managed to benefit from lower raw material prices and improved production costs, as reported by World Economy.
To further enhance its role, Mercedes-Benz has announced plans to invest over EUR 1B to expand the Kecskemét facility in 2024. The modifications will focus on producing new MMA (Mercedes-Benz Modular Architecture) models, replacing the current compact models. Additionally, a new battery plant for high-voltage batteries required for future electric models will be constructed.
The expansion project includes the building of a new body and assembly plant to manufacture all-electric MB.EA (Mercedes-Benz Electric Architecture) models starting from mid-decade. The layout of the plant is designed to reduce transport routes, while the existing paint shop will be modernized to operate using renewable and carbon-neutral energy sources.
In 2023, the Kecskemét plant successfully continued the series production of current compact models, producing over 174,000 vehicles, including the first updated EQB model. The procurement from Hungarian suppliers remained substantial, with 42% of services, raw materials, and non-production capital expenditure being sourced locally.
Furthermore, the Mercedes-Benz Academy in Kecskemét welcomed 115 secondary school students and 22 university students at the start of the academic year in 2023. The academy offers a range of professions for students at both secondary school and university levels.
Mercedes-Benz’s commitment to sustainability is evident, with its production sites having been carbon neutral since 2022. The company aims to meet over 70% of its energy needs with renewable sources by 2030, through the increased use of solar and wind energy and new power purchase agreements. The Kecskemét plant employed 4,477 people in 2023.
With these developments and investments, Mercedes-Benz’s presence in Kecskemét continues to reinforce its position as a key player in the automotive industry, driving innovation and sustainability in Hungary.
