The compact Mercedes Class G is moving to Hungary to cut costs

A few months ago, Mercedes announced it was preparing a compact model of its popular G-Class. This means it will have all the features of an iconic model, but with a more compact size and designed for greater freedom of movement in the city as well. The vehicle will enter production in a few months, but not at a German plant.

Apparently, Mercedes is seeking greater profitability with this model than it could achieve if it were built in Germany, so the brand has looked for an alternative. The chosen plant is, apparently, the factory located in Kecskemét, Hungary. This plant is set to benefit from a considerable investment that will make it the largest Mercedes factory in Europe.

The factory upgrade will allow between 300,000 and 400,000 vehicles to be built per year. It will also increase the number of employees, from 3,000 to 7,500 workers. In addition to this version of the G-Class, this plant will be responsible for producing the new electric C-Class, the GLB and the A-Class with a combustion engine.

The compact version of the Mercedes G-Class will be offered with an electric version and a plug-in hybrid version. The former will feature an NMC battery with a capacity of 85 kWh and will be powered by two electric motors. Its range is quoted at up to 724 kilometres, although this figure has yet to be confirmed.

As for the hybrid version, it is expected to use the same hybrid powertrain fitted to the Mercedes CLA. This features a 1.5-litre combustion engine working together with an electric motor. Combined, it will deliver 208 CV and a maximum torque of 380 Nm. This configuration may offer slightly more power, but we will not know until 13 July, when the update to the Hungarian plant will be presented at the event.