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Daimler's review of investments will not affect construction of plant in Hungary

German car giant Daimler will go through with its announced €800 million investment in Hungary in spite of the company management's call for “absolute budgetary discipline,” Daimler spokeswoman Nicole Rubba told MTI.

Rubba said that construction of Daimler's planned assembly plant in Kecskemét (C Hungary) is consistent with the company's objective to gear its future investments to increasing competitiveness and promoting green technologies.

Rubba said that the building of a Daimler plant in Hungary is a long-term enterprise, adding that “everything is unchanged” with regard to the investment.

Daimler will sell the cars manufactured at the plant in the region.

The Stuttgarter Zeitung reported earlier on Monday that Daimler is reevaluating all of its investments in the light of the worldwide financial crisis, and believes that the austerity measures introduced months earlier will not be sufficient. Rubba said Daimler's units in Russia, Brazil and China might face cutbacks.

Daimler-Benz announced in June that it had chosen Hungary as the site for a new plant at which next-generation Mercedes A- and B-Class compact models will be manufactured. Since then, many European carmakers have announced that they are scaling back production due to a drop in orders. (MTI – Econews)