Mercedes is reportedly planning to assemble its upcoming compact G-Class, nicknamed the “Little G,” at its plant in Kecskemét, Hungary. This move aims to reduce production costs. The new model is expected to launch around 2027 and could bring a more affordable option to the G-Class lineup.
Production Shift to Hungary
According to sources familiar with Mercedes’ plans, the smaller G-Class will be built in Hungary’s Kecskemét factory instead of the Rastatt plant in Germany. This is a significant change since many assumed the vehicle would share the production line with models like the CLA at Rastatt.
- Kecskemét factory is expanding with a €1 billion investment.
- Annual production capacity is set to rise to around 400,000 units.
- Workforce to grow by about 3,000 employees, reaching 7,500 total.
- Hungarian plant could become Mercedes’ largest European production site, accounting for up to 30% of continental output.
What to Expect from the Little G
The compact G-Class will likely differ from the full-size G in terms of off-road ability. It may still outperform models like the GLB on rough terrain but is expected to be more road-focused.
- Launch expected around 2027.
- Model details still unconfirmed; development is cited as “completely new” by Mercedes leadership.
- Platform possibly shared with the CLA family but with distinct engineering.
- Could offer both gasoline and electric versions following dealer feedback, not purely electric as originally planned.
Pricing and Market Position
The new compact G is expected to be more affordable than the current full-size G-Class, which commands a premium price of around €127,600. It will probably cost more than the GLB (starting from about €46,900) but stay comfortably below its bigger sibling.
- The gas version may appeal to buyers wanting traditional engines.
- The electric variant could attract customers looking for zero-emission options.
- Potential cost savings from Hungarian production might impact pricing, though this is uncertain.
Why It Matters
This move highlights Mercedes’ strategy to meet growing demand for smaller luxury off-roaders while managing production costs. Building the compact G-Class in Hungary could make the model more affordable and competitive, broadening its appeal in Europe. The full-size G-Class’ success despite production outside Germany shows a flexible approach can work well for the brand.
Source: motor1.com