Mercedes-Benz has confirmed that a more compact version of the G-Class will be built exclusively at its plant in Kecskemet, Hungary. The car will not get a German build slot, and the full-size G-Class will keep being made in Graz, Austria, as before.
The confirmation comes alongside a 1 billion euro (about $1.09 billion) investment in the Kecskemet site. Capacity there will grow to 350,000 cars a year, and the workforce will expand by roughly 3,000 people. Once the expansion is complete, Kecskemet becomes Mercedes’ largest factory in Europe.
Trade reports say production of the compact G-Class is due to start in 2027. The model was originally planned as electric-only, but Mercedes later decided to add a hybrid variant to the lineup. Official specifications and a name have not been released.
The same plant will also build the electric C-Class and GLC, along with other compact Mercedes models.
