Mercedes-Benz 'Little G' compact SUV with a Hungarian flag in the background.

Mercedes-Benz 'Little G' Production Plans Revealed

Stephen M 3 min read

Mercedes-Benz's compact SUV, the 'Little G', will be produced in Hungary, not Germany or Austria, to save costs.

Key Takeaways

  • Mercedes-Benz’s ‘Little G’ compact SUV will be produced in Hungary, not Germany or Austria.
  • The Kecskemet facility in Hungary will produce the SUV, following a €1 billion expansion project.
  • The plant will become the brand’s largest in Europe, with an annual production capacity of 300,000 to 400,000 vehicles.
  • The ‘Little G’ is expected to adopt the brand’s 1.5-liter hybrid powertrain and a fully electric version is also planned.
  • The move is reportedly due to rising costs associated with western European production.

Where Will the ‘Little G’ Be Produced?

The Mercedes-Benz ‘Little G’ compact SUV will be produced in Hungary, not Germany or Austria. According to a report by Automotive News Europe, the Kecskemet facility in Hungary has been earmarked for the SUV, following a €1 billion expansion project.

This move is a departure from the production plans of the full-size Mercedes-Benz G-Wagen models, which have been constructed by hand at the Magna Steyr automobile plant in Graz, Austria since 1979.

Why Is Mercedes-Benz Moving Production to Hungary?

The decision to produce the ‘Little G’ in Hungary is reportedly due to rising costs associated with western European production. By moving production to Hungary, Mercedes-Benz aims to reduce costs and increase efficiency.

This move is part of a larger trend in the automotive industry, where manufacturers are seeking to reduce costs and improve competitiveness by shifting production to lower-cost countries.

What Are the Production Plans for the ‘Little G’?

The Kecskemet facility in Hungary will produce the ‘Little G’ SUV, with an annual production capacity of 300,000 to 400,000 vehicles. This will make the plant the brand’s largest in Europe, accounting for around 30% of the brand’s total European production.

The ‘Little G’ is expected to adopt the brand’s 1.5-liter hybrid powertrain, which is also used in the CLA-Class and GLB-Class. A fully electric version of the SUV is also planned.

What Does This Mean for Mercedes-Benz’s German Plants?

The decision to produce the ‘Little G’ in Hungary is not ideal for those working in Mercedes-Benz’s German plants. The move means that one fewer model will be built in Germany, and it’s a model that is considered one of the coolest vehicles in the upcoming portfolio.

Specifications

SpecificationValue
Production LocationKecskemet, Hungary
Annual Production Capacity300,000 - 400,000 vehicles
Powertrain1.5-liter hybrid
Electric VersionPlanned

Frequently Asked Questions

Q: Where will the Mercedes-Benz ‘Little G’ be produced?

The Mercedes-Benz ‘Little G’ will be produced in Hungary, at the Kecskemet facility.

Q: Why is Mercedes-Benz moving production to Hungary?

The decision to produce the ‘Little G’ in Hungary is reportedly due to rising costs associated with western European production.

Q: What are the production plans for the ‘Little G’?

The Kecskemet facility in Hungary will produce the ‘Little G’ SUV, with an annual production capacity of 300,000 to 400,000 vehicles.

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