The new plant will cost more than €800 million ($1.24 billion) to establish and will create some 2,500 jobs. Moving to a plant in Hungary will allow Mercedes to manufacture the cars at a lower cost than if they were produced in Germany, and the fact that it’s a new plant means the build process should be efficient thanks to latest construction techniques.
"We are planning a new plant in Hungary to boost our competitiveness and to gain access to potential of the Eastern European markets," Daimler CEO Dieter Zetsche confirmed today.
Mercedes hasn’t forgotten its Rastatt plant back in Germany, and plans to invest €600 million ($928 million) to increase capacity for more small cars.
The new family of small cars is designed to help Mercedes meet tougher fuel-consumption and emissions regulations as well as providing it with a range of exciting compact models to launch in North America, although such an export program is yet to be confirmed. They will also drop the expensive 'sandwich' design of the current A and B-Class in favor of a new MFA (Mercedes Frontwheel Architecture) FWD platform. This means the new cars will sit much lower than current models, possibly even lower than the BMW 1-series and Audi A3, and will also be much sportier.
2012 Mercedes-Benz small car family



Reader Comments
Wed Mar 12 2008 7:21 AM
chris says
all very stylish looking. and by that, i mean to a younger crowd, which is fantastic cause it doesnt look like Merc has sold their soul to pepsi and MTV.
i'd like to see if the final production would actually look like any of these though. the current B class looks a little minivanish.
the 3 door and 4 door coupe look especially hot and fresh. now if only they could compete price wise. cause for the same price as a base a or b class, i could get a fully loaded volvo c30, with AWD and much more power than any of these things will ever have. i dont see AMG even going near these.
Wed Mar 12 2008 9:45 AM
Jim says
puke
Wed Mar 12 2008 10:50 AM
Adam says
The 3-door looks a bit like an Opel Astra. And the 5-door should provide good competition for the Audi A3. Not bad... but I have to say, you'd have to be twisting my arm to buy a FWD car, and even then... the last one I'd buy is a FWD M-B. I'd much rather go with a C-class, especially with the new one being such an impressive car.
Wed Mar 12 2008 2:29 PM
NaBUru38 says
That "four-door sedan with a coupe-styling" sounds too much like an S40... which is said to be discontinued soon. Might be a good idea, might not.
I accept that the next-generation A-Class can be transformed from a mini MPV into a mini SUV (i.e. Sedici/SX4, Terios, Urban Cruiser). The fourth rendering looks like what the GLK should have been, above all if Mercedes actually cares about fuel consumption. But a B-Class off-roader wouldn't differ much from a GLK, save for a non-brick shape.
Wed Mar 12 2008 4:36 PM
Sir Yappie says
Now if they change the design to rear wheel drive, as in a shortening off the C Class platform i think they could sweep the board for the small executive class and take alot of sales away from BMW and Audi.
Front wheel drive is hampering them. People want a sportier ride so go for the rear wheel drive of the Beemers or the perkier engines of the Audis for their fun !
Wed Mar 12 2008 6:47 PM
HECTOR says
I see your *puke* Jim and I will raise you a *gouging my eyes out*
Now the tools of the world have a choice between the BMW 1 series and the MB B class. And let's not forget the Audi A3.
Mon Mar 24 2008 7:43 PM
Sir Yappie says
It seems that Merc is going the filled in badge look across the range...
Wed Mar 26 2008 9:20 AM
fipa says
Enything new?
Sat Mar 29 2008 12:44 AM
desig says
THIS IS NOT A MERC! you feel me!?
Mon Mar 31 2008 12:52 AM
GH says
I feel you, desig.
Sat Apr 19 2008 9:51 AM
dfasd says
Do you think this car is look like toyota vios?
Wed Jun 18 2008 9:11 AM
chris says
nab.. where dod you hear the S40 was getting axed? its volvo's small sedan. its going to be redone in the next couple years on the C1-2 platform.
all you nay sayers are crazy. seriously. why is it that you think MB, BMW, and audi shouldnt do small cars? what happens when you are sick of your ford fiesta and want something a little more refined? what happens when the yaris quality just isnt cutting it???
Wed Jun 18 2008 9:37 AM
NoNameDenton says
Wonder if they will send it to the States to compete against the BMW 1 series. And Chris the word is that the S40 will get axed as Volvo wants to focus more on their wagons.
Wed Jun 18 2008 11:54 AM
CK says
I think they're nice looking small cars. The SUV shown is marginally better looking than the hideous GLK but the Coupe version looks good. I'd love to know what all these 'critics' drive that makes this new small car range from MB so appalling? I think it's stoopid to slag off a car for simply existing- they might not be the most exciting MB's ever but if Benz doesn't do this it'll eventually disappear up it's own arse when there's no-one left who can afford to run an S-Class. The bitching about the whole FWD thing is tired already- RWD is generally accepted as better (although this is 75% subjectivity) but, please, please, can we not get over our small-minded pre-conceptions that FWD is somehow an irrelevant technology. Small cars work well as FWD's - decades of Golf's, Fiat's, Peugeot's (205 specifically) show that they can even be .......wait for it....FUN! Yes, you heard me, FWD's can be fun! Get over yourselves and embrace the future!
Wed Jun 18 2008 1:16 PM
jeff says
The audi a3 and s3 is still going to dominate this thing
Sun Jun 22 2008 9:02 PM
NaBUru38 says
Chris, this thread dates from March 07, but it shows what I'm saying: http://www.leftlanenews.com/speculation-2009-volvo-s40.html
Left Lane said this new sedan would be called S40, not S60, but the fact remains: "It appears Volvo might merge the S40 and S60 lines into a single new entry-level luxury sedan."
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