Daimler Denies Reports on Capacity Expansion at New Hungarian Plant

Referring to unnamed sources, Hungarian business daily Napi Gazdaság reported yesterday that German car maker Daimler AG may be considering doubling the capacity of its new Hungarian facility in Kecskemét, which still in the construction phase, and that it would make a decision on this matter after launching pilot production at the plant this fall.

However a Daimler spokeswoman denied this information in an e-mailed statement to Reuters, stating that there are currently no plans for the expansion of the plant. She added that the plant's topping out ceremony had only taken place in October.

The company began construction of the €800 million Kecskemét factory in June 2009. Under current plans, the plant will employ 2,500 people and will produce 100,000 next generation Mercedes-Benz A and B-Class cars annually starting next year.