Mercedes-Benz Baby “g-Wagon” May Not Be Made In Germany

Mercedes-Benz’s compact, more affordable “g-Class”—often called the Baby G—has been in development for nearly three years since its 2023 teaser. While the automaker uses the lowercase “g” to distinguish it from the full-size SUV, a firm release date remains unannounced.

Mercedes-Benz’s compact “Baby g” is expected to launch in 2027, with production likely shifting to the Kecskemét plant in Hungary to reduce operating costs. Despite earlier speculation that the model would be built in Germany alongside the CLA, the move to Hungary aligns with Mercedes’ strategy to expand its European production capacity and improve cost efficiency.

Mercedes-Benz is investing €1 billion to expand its Kecskemét plant, aiming for 400,000 units in annual capacity and a 30% share of its European output. This expansion, which adds 3,000 employees, supports the production of the upcoming “Baby g”. Building the model in Hungary could lower costs, and while it won’t match the full-size G-Class off-road, it is expected to outperform the GLB on rough terrain as a distinct, all-new development.

Irrespective of the manufacturing site, the upcoming model is projected to be more competitively priced than initially anticipated. While the primary strategic focus was an exclusively electric powertrain, feedback from United States dealerships influenced the manufacturer to incorporate an internal combustion engine option. Although the price differential between internal combustion engine (ICE) and electric vehicle (EV) variants is narrowing, the mild-hybrid GLB presently holds a price advantage of approximately €4,000 over its electric counterpart in Germany.

Regarding potential pricing, it is anticipated that the vehicle will command a notable premium over the GLB, which currently commences at €46,868. Concurrently, it is expected to remain significantly more accessible than the flagship G-Class, which is priced at €127,591. Given that Mercedes-Benz executives have designated this as an entirely new model, it will likely be positioned at a higher price point than the brand’s existing compact offerings, while maintaining a distinct market segment from the premium G-Class.

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