Mercedes Is Shifting Its Current A-Class Production To Hungary

Although development of a successor to the current A-Class is already underway, Mercedes recently decided to keep the current model in production beyond 2025. It already marks a change in plans, but it’s not the only change coming from Stuttgart regarding their most compact model.

Soon, the A-Class will no longer roll off the German assembly line. Instead of continuing production at its factory in Rastatt, Mercedes-Benz is moving production of the current A-Class to its facility in Kecskemet, Hungary, reports Auto News.

Moving production from Western to Eastern Europe is, in its essence, a financial move. Lower labor and operating costs in Hungary make it a more cost-effective base for the A-Class, especially as Mercedes looks to protect margins on its most affordable offering. Production at the Hungarian factory should start in the second quarter of the year.

The company is currently implementing an extensive cost-cutting program to compete more aggressively with Chinese brands. The goal is to save around 5 billion euros by the end of 2027.

The current A-Class, which was launched in 2018, will remain in production until 2028, and a successor is already in the works. The next generation is expected to adopt the MMA platform, the same architecture that underpins the new CLA. This would allow Mercedes to offer both ICE variants and electric variants, maintaining flexibility in all markets.

Moving to Hungary also serves another purpose. By moving production of the A-class, Mercedes frees up capacity at the factory in Raštat for upcoming models based on the MMA platform. Expansion in Hungary will be accompanied by significant employment. Around 3,000 new workers are expected to join the existing workforce of 4,500 people at the Kecskemét plant, further deepening the company’s investments in the region.

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