German automaker Daimler is set to begin production of a fully-electric compact SUV in Hungary sometime in the fourth quarter of 2021 following a €100 million investment.
Photo: Daimler
Car manufacturing is central to the Hungarian economy and the vehicle will be the first fully-electric car to be produced in the nation.
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Daimler is joined by other key German automakers, Audi and BMW, in expanding their ventures into the country by increasing manufacturing throughput.
Daimler's expansion will be based in the small central Hungarian town of Kecskemet, which hopes to create at least 4,400 new jobs in the area.
Hungary's economy fell by 13.9% for Q2 2020 and was hit hard by the coronavirus pandemic in general. A further drop of 5-6% is forecast for Q4.
The automotive sector is expected to be instrumental in helping struggling central European nations recover from the pandemic.
Daimler has recently announced its Mercedez-Benz brand will be completely decarbonised by 2039, in line with general EU rules regarding post-Covid recovery.
The German automaker will be introducing eight new electric models for production as part of its 2022 portfolio.
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