Mercedes' Hungarian mega-factory returns to single-shift operation

For more than a year, the company's management has been emphasizing that the Kecskemét plant will play a key role among Mercedes plants in Europe and has a bright future ahead of it in the long term. In contrast, the previous three-shift work schedule was first reduced to two shifts and then to one shift, and employees reported to the newspaper that entire production lines were being dismantled.

The company acknowledges that single-shift operation will be in effect in certain areas between January and April, but

emphasizes that this will not result in a reduction in the number of permanent staff.

According to Mercedes-Benz's Hungarian subsidiary, the shift reduction is related to the approximately €1 billion investment launched in 2022, which aims to achieve an annual capacity of 300,000 units. The reason given is that they are preparing to manufacture new models based on the MMA and MB.EA platforms, which requires comprehensive restructuring. According to the company, the gradual ramp-up of production of the new, all-electric GLB series began in January 2026.

In practice, however, according to industry and internal sources quoted by the newspaper, the factory has been operating at less than half its capacity for months, although the company does not disclose precise production figures.

Meanwhile, according to data from the National Bank of Hungary (MNB) for the period January–September 2025, production at the Kecskemét factory fell by 43% on an annual basis.

The decline in capacity is essentially due to a specific model change. In the summer of 2024, Mercedes announced that it would discontinue production of the CLA in Hungary and relocate it to Rastatt, Germany, leaving significant spare capacity behind. Although the company also announced that production of the A-Class would be moved from Germany to Kecskemét, the latest information indicates that this will not start until the second quarter of 2026.

The schedule for the factory expansion has also been modified several times during this period. The second Kecskemét plant was originally scheduled to start operations in 2025, but the official target date is now 2026, with the company planning the grand opening for the second half of next year. According to the company, two new buildings are currently under construction for the bodywork and assembly lines, with another for battery assembly, while the second paint shop is also being modernized.

According to the newspaper, tensions are also evident in the area of recruitment: Mercedes promises to create around 3,000 new jobs in the medium term, while the plant currently employs around 4,500 people. According to the company, the recruitment process began in October 2025, but employee sources believe that the large-scale expansion has not yet begun, partly because there is no need for new workers with single-shift production.

The situation in Kecskemét is not made any easier by global market trends. Mercedes-Benz passenger car sales fell by 9% worldwide in 2025, with particularly sharp declines in Asia and North America. Sales declined most in the segments linked to Kecskemét: sales of electric models fell by 9% and those of the Entry model family by 10%, which is in line with the broader export picture:

All this suggests that the shift reduction at the domestic factory may be due not only to technological change but also to market pressures, which is supported by the company's financial data. According to data reviewed by 24.hu,

in 2024, sales revenue will decrease from €5 billion to €4.2 billion, and after-tax profit will decrease from €95.6 million to €57.6 million.

Cover photo (for illustration purposes only): Shutterstock