Mercedes-Benz officially confirmed to the German media significant changes in its production network, which directly affect the future of their most affordable model. Namely, they decided to completely move the production of the A-Class from their factory in Rastatt, Germany, to the plant in Kečkemet in our neighboring Hungary.
This strategic shift will begin in the second quarter of 2026, which will make the Hungarian factory, which already plays a key role in the production network, take on even greater responsibility for the compact vehicle segment. The A-Class has been assembled there, namely, since 2018, but according to the new product, its entire production will take place there.
It remains alive until 2028.
Although there were plans to phase out the A-Class entirely as part of a strategy to reduce the supply of compact vehicles, the life of this model has been extended until 2028. The decision to keep the model comes in response to market needs, but it will no longer carry the “Made in Germany” label. Manufacturing in Hungary is considered a more economically viable option as labor costs and operating costs are lower compared to Germany, which is key to maintaining profitability on lower-margin entry models.
However, if Mercedes bosses are to be believed, the main reason for this move is not cost reduction, but the necessary reorganization of capacity in Rastatt, Germany. The factory there has been modernized and is preparing for the production of a new generation of compact models based on the advanced MMA platform. The departure of the A-class frees up space for the new Mercedes CLA and CLA Shooting Brake, as well as future generations of the GLA model (expected in 2027) and fully electric vehicles that will replace the current EQA.
The plant in Kečkemet employs more than 5,000 people, and with the new capacity increase it should produce between 300,000 and 400,000 vehicles annually. The hiring of new workers was also announced in order to support the increased scope of work. It is interesting to note that while the A-Class is getting a “second chance”, the B-Class is unlikely to have the same fate and is expected to be phased out without a direct successor.