Daimler Launches €250 Million Update to Hungary Factory

Daimler AG says it will spend €250 million ($279 million) by 2018 to expand bodymaking operations at its Mercedes-Benz factory in Kecskemet, Hungary.

The facility currently produces Mercedes B-Class cars and is Daimler’s sole source for CLA small sedans and sport wagons. Automotive News Europe reports the expansion will add capacity for next-generation models and install more efficient and flexible production equipment.

The €800 million Kecskemet factory opened in 2012 with capacity to make about 150,000 vehicles per year.