According to the decision of 18 June 2008, the automotive giant is going to manufacture Mercedes A and B class cars in Hungary-Kecskemet from 2011. Daimler will invest €800m and create up to 2,500 jobs at the new assembly plant in Hungary and further 10000 through Hungarian suppliers.

In the competition for the investment Hungary foreran Poland and Romania. “Hungary offers the best conditions to realize the planned investment. The establishment of the new plant is based on the unanimous decision of the board of directors of the company.”-said

Florian Martens, spokesman of Mercedes. The site in Hungary will be the first plant of Daimler-Benz in Central Eastern Europe. Besides complete manufacturing the Hungarian site will also be responsible for Central Eastern European sales.

The Hungarian government’s investment agency, ITD Hungary, which has also assisted Daimler in preparing its Hungarian project, is currently involved in 27 other investment projects related to the automotive sector. ITD Hungary sources reveal that there are talks under way about establishing new plants to manufacture automotive parts and components, and setting up new supplier bases in Hungary. Other projects under consideration would create assembly plants and automotive research and development centres.

In the first five months of 2008, 15 projects managed by ITD Hungary have been closed with a positive outcome. These projects have created about 3,400 new jobs and yielded a total investment worth HUF 131 billion.

„Currently we are involved in 36 major investment projects”, said Mr. György Rétfalvi, CEO of ITD Hungary and added: „Should all of these be implemented, new money worth HUF 509 billion would be invested in Hungary creating more than eight thousand new jobs.