BUDAPEST: The Hungarian subsidiary of Mercedes-Benz (Mercedes-Benz Manufacturing Hungary Kft.) has closed a record year seeing EUR 3.4 billion revenues and turning out approximately 190,000 vehicles at the Hungarian plant in Kecskemét, the company announced today during a press conference. Last year the company also performed well in sales, seeing a 38% increase.
“The year of 2016 was a year of growth in its entirety. The 190,000 vehicles turned out constitutes a 3.8% rise compared to the preceding year, breaking our record. Our future outlook is great thanks to the expansion of the current plant and the announcement on the construction of a second plant,” said Christian Wolff, the CEO of Mercedes-Benz Manufacturing Hungary Kft.
Mercedes-Benz announced two big investments in the country last year. Firstly, the German car manufacturer is investing EUR 580 million in building a modern car body plant scheduled to finish in 2018. Secondly, Mercedes announced it would build a second plant in Kecskemét through an investment of EUR 1 bln, which will turn out four wheel drive models under the aegis of Industry 4.0. The first vehicles are expected to roll out of the second plant at the end of the decade.
“The majority of our current investments are being covered from our profits made through the last year. This way, we are investing our after tax profit in Hungary once again, which shows our long-term commitment to the country,” said Ekkehard, CFO of Mercedes-Benz Manufacturing Hungary Kft., during the event. (Earlier this year, Philipp received the Local Partnership Award from HIPA President Róbert Ésik, at the BBJ Expat CEO of the Year gala. The CFO discussed successes and challenges in doing business in Hungary with the Budapest Business Journal in an exclusive interview after receiving the award.)
Revenues of Mercedes-Benz Manufacturing Hungary Kft. exceeded EUR 3.4 bln, also exceeding the previous year’s results. Workers at the Kecskemét factory contributed to the Hungarian budget with an accumulated EUR 16 mln through personal income tax and other contributions. The company, as an employer and group, paid an accumulated EUR 24 mln to the Hungarian government and the local government of Kecskemét.
Since having been established in 2008, the firm created almost 4,000 jobs in the country, and is planning to hire a further 2,500 in the near future following its recent investments. In 2011, Mercedes launched its own dual training system, the first such in Hungary, and the first professionals acquired their certifications in 2014, many of whom currently work in the plant of Kecskemét.
