Mercedes Sustains the A-Class, but It Will Soon Be Produced Elsewhere | Carscoops
The A-Class will continue production until 2028, but it is relocating eastward, with Mercedes-Benz transferring manufacturing to Hungary to make room for next-generation models.
8 hours ago
by Brad Anderson
The production move clears space for the new CLA at the Rastatt factory. A substantial savings plan is being implemented, with this model being central to it.
The A-Class will be produced at least until 2028.
Mercedes is not finished with the A-Class yet. Though work on a successor is already underway, the company has recently opted to extend the current model's production beyond 2025, which indicates a shift in strategy. This is not the only notable development for the brand's smallest model coming from Stuttgart.
Read: Mercedes Responds to Consumer Demand and Keeps Small Cars Available
Shortly, the A-Class will no longer be manufactured in Germany. Instead of continuing production at the Rastatt facility, Mercedes-Benz will move A-Class production to its plant in Kecskemét, located about 100 kilometers (62 miles) from Budapest, Hungary, as reported by Auto News.
The shift of production from western to eastern Europe is fundamentally a financial decision. The reduced labor and operational expenses in Hungary provide a more economical base for the A-Class, particularly as Mercedes aims to safeguard margins on its most affordable model.
Manufacturing at the Hungarian facility is scheduled to commence in the second quarter, with annual production expected to reach between 300,000 and 400,000 vehicles.
The company is currently implementing an extensive cost-cutting program to enhance its competitiveness against emerging Chinese brands, aiming for savings of around €5 billion (approximately $5.9 billion) by the end of 2027.
Extending the Model's Life
The existing A-Class, which debuted in 2018, will now be produced until 2028. A successor is already being designed, expected to use the MMA platform that will also support the new CLA. This would allow Mercedes to provide both combustion and electric versions, ensuring flexibility across various markets.
This decision follows a phase of uncertainty. Early in 2025, Mercedes announced plans to discontinue the A-Class after its current generation as part of a strategy to trim its small car lineup.
However, a few months later, reports from September suggested that a new entry-level vehicle would instead be a compact SUV. It remains uncertain whether this plan is still active or if the A-Class will persist in its hatchback format.
Hungary’s Expanding Role
The transition to Hungary serves an additional purpose. By moving A-Class production, Mercedes can utilize the newly available capacity at the Rastatt facility for upcoming MMA-based vehicles, notably the new CLA.
This expansion in Hungary will also involve significant hiring, with around 3,000 new employees anticipated to join the existing workforce of 4,500 at the Kecskemét site, thus deepening the company's investment in the area.
Other articles
This Teen Owned a New Audi S5 for Four Days, Which Was Approximately Four Days Too Long | Carscoops
A teenager from Nebraska had their Audi S5 impounded only days after buying it, after being arrested for driving at 133 mph, which resulted in several charges.
It Took 66 Years to Break the Trabant's Nurburgring Record, and Here's How It Happened | Carscoops
A diesel microcar from Ligier has just set the record for the slowest lap at Nürburgring, and indeed, a limited edition will be produced in honor of that achievement.
Toyota Will Allow You to Factory-Upgrade Your Old Land Cruiser, Provided You Pay for It | Carscoops
Toyota is bringing back its discontinued 150 Series SUV, known in the U.S. as the Lexus GX, with a factory update that comes at a surprisingly high price.
Stellantis already possesses the electric minivan of the future, but it is not yet available in the US.
The Chrysler Pacifica has seen better days, but Stellantis has a far more advanced van ready to go—if only they would offer it in this market.
BMW Achieved Record Car Sales in America, Yet EV Buyers Lost Interest | Carscoops
The German brand achieved a record in US sales in 2025; however, sales of electric vehicles declined due to the rollback of tax credits and increasing consumer reluctance.
He Created the Volvo You Recall, Now He Needs to Address What It Has Become | Carscoops
Thomas Ingenlath is returning to a company undergoing change, which experienced a decline in sales in 2025.
Mercedes Sustains the A-Class, but It Will Soon Be Produced Elsewhere | Carscoops
The A-Class will continue until 2028, but its production will shift to Hungary, allowing Mercedes-Benz to make room for future models.