Mercedes Hungary sees record turnout, sales in 2016
The Hungarian subsidiary of Mercedes-Benz (Mercedes-Benz Manufacturing Hungary Kft.) has closed a record year seeing EUR 3.4 billion revenues and turning out approximately 190,000 vehicles at the Hungarian plant in Kecskemét, the company announced today during a press conference. Last year the company also performed well in sales, seeing a 38% increase.
“The year of 2016 was a year of growth in its entirety. The 190,000 vehicles turned out constitutes a 3.8% rise compared to the preceding year, breaking our record. Our future outlook is great thanks to the expansion of the current plant and the announcement on the construction of a second plant,” said Christian Wolff, the CEO of Mercedes-Benz Manufacturing Hungary Kft.
Mercedes-Benz announced two big investments in the country last year. Firstly, the German car manufacturer is investing EUR 580 million in building a modern car body plant scheduled to finish in 2018. Secondly, Mercedes announced it would build a second plant in Kecskemét through an investment of EUR 1 bln, which will turn out four wheel drive models under the aegis of Industry 4.0. The first vehicles are expected to roll out of the second plant at the end of the decade.
“The majority of our current investments are being covered from our profits made through the last year. This way, we are investing our after tax profit in Hungary once again, which shows our long-term commitment to the country,” said Ekkehard, CFO of Mercedes-Benz Manufacturing Hungary Kft., during the event. (Earlier this year, Philipp received the Local Partnership Award from HIPA President Róbert Ésik, at the BBJ Expat CEO of the Year gala. The CFO discussed successes and challenges in doing business in Hungary with the Budapest Business Journal in an exclusive interview after receiving the award.)
Revenues of Mercedes-Benz Manufacturing Hungary Kft. exceeded EUR 3.4 bln, also exceeding the previous year’s results. Workers at the Kecskemét factory contributed to the Hungarian budget with an accumulated EUR 16 mln through personal income tax and other contributions. The company, as an employer and group, paid an accumulated EUR 24 mln to the Hungarian government and the local government of Kecskemét.
Since having been established in 2008, the firm created almost 4,000 jobs in the country, and is planning to hire a further 2,500 in the near future following its recent investments. In 2011, Mercedes launched its own dual training system, the first such in Hungary, and the first professionals acquired their certifications in 2014, many of whom currently work in the plant of Kecskemét.
Mercedes sees record sales too
Mercedes-Benz Hungária Kft., the branch of the German giant that is responsible for car sales in the country, saw sales of almost HUF 80 bln in 2016, a 38% growth as compared to the preceding year.
“It is an incredible joy for me to talk about a 38% growth in the sales, which is also the highest, in the premium segment of the German manufacturers,” said Jörg Schmidt, the CEO of Mercedes-Benz Hungária Kft. He added that this might well have contributed to the fact that the brand finished as the market leader of the premium segment in the country, according to figures from Datahouse, with a total of 2,571 sold cars. “Our short- and long-term target therefore is to keep this position, and to further increase our leading gap,” he added.
Mercedes-Benz believes the success of its sales lies in its partner network in the country, which saw the addition of another partner, and employed a staff of more than 1,200 by the end of 2016.
Mercedes is optimistic about this year as well, as in the first quarter the company preserved its market-leading position in the premium segment, and saw growth of 45.5%, compared to the same quarter of last year. This is a record for the company, as it has never happened before that Q1 figures have exceeded the preceding year’s figures in the corresponding period.
This year the company is anticipating the opening of more salons, and the renovation of exhibition rooms and service facilities, as well as the handing over of unique AMG Performance Centers. New models to be introduced in the Hungarian market include the E-class Coupé, Cabriolet and All Terrain; Mercedes-AMG GT Roadster; the X-class pickup; the renewed S-class and GLA, as well as smart electric drive models. Currently 12 hybrid, plug-in hybrid and entirely electric models are available in the personal car portfolio, which is expected to be expanded with an additional ten electric models by 2025.
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