Mercedes Won’t Build Its New Baby G-Class In Germany To Cut Costs

Key Takeaways

• The new baby G-Class will be built at Mercedes’ expanded Hungary plant.
• Mercedes is investing to nearly double production capacity in Hungary.
• The smaller rugged SUV will arrive with hybrid and all-electric powertrains.
• Production is expected to start next year.
• The baby G-Class will have a range of up to 450 miles (724 km) in its all-electric version.

Why is Mercedes building the baby G-Class in Hungary?

Mercedes-Benz has decided to produce its new baby G-Class in Hungary instead of Germany to cut costs. Labor costs in Hungary are lower than in Germany, making it a more cost-effective option for the production of the smaller vehicle.

This decision is likely driven by the fact that the baby G-Class is expected to have lower margins than larger, more premium models. By producing it in Hungary, Mercedes can reduce its production costs and maintain profitability.

What are the key details of the baby G-Class?

The all-electric version of the baby G-Class is expected to have an 85 kWh NMC battery and a pair of electric motors. The driving range is estimated to be up to 450 miles (724 km).

The hybrid version is likely to use the same powertrain as the CLA sedan, pairing a 1.5-liter engine with electric assistance to deliver a combined 208 hp and 280 lb-ft (380 Nm) of torque.

What is the significance of the Hungary plant expansion?

Mercedes is investing to nearly double production capacity in Hungary, with the plant expected to produce between 300,000 and 400,000 vehicles per year. The workforce will also grow to roughly 7,500 people, up from 3,000.

The plant will take on production of models including the new electric C-Class, the GLB, and the combustion-powered A-Class.

What does this mean for the future of Mercedes-Benz?

The decision to produce the baby G-Class in Hungary is a strategic move by Mercedes-Benz to reduce costs and maintain profitability. This could be a sign of things to come, with the company potentially shifting more production to lower-cost countries in the future.

However, it’s worth noting that Mercedes-Benz is still committed to producing high-end models in Germany, where it can maintain its premium brand image and quality standards.

Frequently Asked Questions

Q: Where will the baby G-Class be produced?

The baby G-Class will be produced at Mercedes’ expanded Hungary plant.

Q: Why is Mercedes building the baby G-Class in Hungary?

Mercedes is building the baby G-Class in Hungary to cut costs, as labor costs in Hungary are lower than in Germany.

Q: What are the expected specs of the baby G-Class?

The all-electric version is expected to have an 85 kWh NMC battery and a pair of electric motors, with a driving range of up to 450 miles (724 km). The hybrid version is likely to use the same powertrain as the CLA sedan.