Mercedes will keep the A-Class, but production will be moved from Germany to Hungary
Mercedes-Benz has decided to keep the compact A-Class in its lineup and extend the production of the current generation after 2025. At the same time, the company is changing its production strategy: soon the A-Class will no longer be manufactured in Germany.
What is known
As reported by Automotive News, the production of the hatchback will be moved from the factory in Rastatt to the Mercedes-Benz plant in Kecskemét, Hungary. The start of assembly in Hungary is planned for the second quarter of the year. The annual production volume is estimated at 300-400 thousand vehicles.
The shift in production is primarily due to cost reduction. Lower labor and operational expenses make the Hungarian site more favorable for A-Class production, allowing Mercedes to maintain the margin on its most affordable model. This decision fits into a large-scale cost optimization program, within which the company plans to save about 5 billion euros by the end of 2027.
The current generation A-Class, introduced in 2018, will remain in production until 2028. The model's successor is already under development. It is expected that the next generation will be built on the MMA platform — the same architecture used in the new CLA. This will allow offering versions with both internal combustion engines and fully electric modifications depending on the market.
The decision to extend the A-Class's lifecycle followed a period of uncertainty. In early 2025, Mercedes announced plans to stop production of the model after the current generation. Later, in September, reports surfaced about a possible replacement of the A-Class with a new compact crossover.
The move of production to Hungary also addresses production tasks within the group. The freed-up capacity of the plant in Germany will be used for producing new models on the MMA platform, including the CLA.
Source: Automotive News
