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Legendary G Class Mercedes might be produced in Hungary

Daimler wants to extort a new contract out of Magna STEYR the manufacturer of G Class. If there is no agreement soon, production can be moved to Kecskemét, Daimler's first Central European factory.

26 January 2012

Legendary Mercedes G Class might be produced in HungaryDaimler is "blackmailing" the Austrian manufacturer of Mercedes Class G with Hungary - written by Kleine Zeitung. The German company's first step to raise production to 8,500 cars a year, and then 10,000 cars a year, therefore, capacity increase expected from Magna. Geunther Apfalter, the managing director of the Austrian company said tough negotiations taking place concerning the re-negotiation of the contract, but he hopes to keep production in Graz.

Daimler made things clearif no new contract agreed, they are ready to move production to new plant in Kecskemét from 2013, where more efficient production cost of famous cross country cours would be reached due to cheaper Hungarian labour, anyway. Magna argues, however, that the G class produced since 1979 - 32 years of experience. Last year they produced 7,228 cars of G class produced in the plant and 220,000 cars have been rolled off the assembly line since 1979.

The contract with Magna runs until 2015, included a clause, however, that Daimler may terminate the agreement at the end of the year. Not later than the end of January Germans are waiting for the answer from Austrians whether to agree the new conditions.

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