The Kecskemét factory, which opened in 2012, currently employs around 4,500 people. Around EUR 1 billion has been invested in the site since 2022 to make existing production lines more flexible and to implement comprehensive digitalization.
In addition to state-of-the-art manufacturing technologies, artificial intelligence and increased automation are playing a key role. The automaker says the new production lines were designed and optimized “using extremely precise digital simulation techniques, resulting in significant savings in both construction time and costs.”
“The start of series production of the fully electric GLB marks a new chapter in the history of the Mercedes-Benz plant in Kecskemét. Starting this year, this versatile, compact SUV will roll off the production line here in both fully electric and high-tech hybrid versions,” says Michael Schiebe, the Mercedes-Benz Group AG management board member responsible for production, quality and supply chain management.
Production and site manager Jens Bühler describes the start of series production of the new electric GLB as a significant step for the Kecskemét factory.
“Our plant is efficient in assembly, innovative in its processes and, as usual, flexible in integrating different powertrains. Thanks to the great commitment and enthusiastic cooperation of the entire team, the transition went smoothly. I am particularly proud of this,” he says.
Local-for-local Strategy
With more than 30 factories worldwide, Mercedes-Benz says it “fundamentally pursues a short supply chain (local-for-local) strategy.” Accordingly, the body components are produced in the factory’s own press shop, which reduces transport distances and emissions. The newly developed batteries for the all-electric GLB come from the site’s new battery assembly plant, a first in the history of the Kecskemét factory.
Mercedes-Benz’s vehicle manufacturing sites have been carbon neutral since 2022, and the plan is to cover more than 70% of production energy requirements with renewable energy by 2030. Beyond that, the goal is for all manufacturing plants worldwide to operate on 100% renewable energy and with zero carbon dioxide emissions by 2039.
To that end, Mercedes-Benz is installing a solar park at its Kecskemét site, and says it is “paying particular attention to the continuous reduction of water consumption and waste production.”
The factory won the PwC Hungary 2025 Most Attractive Workplace Award in both the overall category and among automotive manufacturers.
This article was first published in the Budapest Business Journal print issue of January 30, 2026.



