Mercedes boss praises major Hungarian plant as 'benchmark in Europe'

Mercedes chief executive Ola Källenius on Monday called the company's massive factory in Hungary a "benchmark in Europe," as he attended a ceremony to mark the opening of the site's new extension.

The Kecskemét plant is "proof that top Mercedes-Benz quality and top cost efficiency can go together - with factory costs that set the benchmark in Europe."

Mercedes is aiming to double the proportion of production in low-wage European countries from 15% to 30% over the next few years. 

According to chief financial officer Harald Wilhelm, production costs in Hungary are 70% below the German level.

The new Hungarian prime minister, Péter Magyar, also attended the opening.

Kecskemét is situated around 80 kilometres south-east of the Hungarian capital, Budapest. 

The Mercedes group has significantly expanded the site, where vehicles have been manufacture d since 2012. 

It is now the country's largest car factory, and with a potential annual capacity of up to 400,000 vehicles, Kecskemét will become the largest Mercedes plant in Europe.

At a cost of around €1 billion ($1.14 billion), two new halls for bodywork and assembly lines have been added to the plant. In addition, a second press shop, a new paint shop and a battery assembly facility have also been built.

The A-Class and the GLB SUV are already being produced in Kecskemét. with the electric C-Class now being added to the line-up.

In the existing hall, internal combustion and electric vehicles are produced flexibly on a single line, while the new hall is designed exclusively for fully electric models.