Stuttgart, Germany - Representatives of Daimler AG, the Hungarian government and the city of Kecskemét have signed a memorandum of understanding for the construction of a new Mercedes-Benz plant in the city. The memorandum will lead to a final contract being signed in the fall of 2008.

The plant will build premium compact cars and will work closely with the production network in the company’s plant in Rastatt, Germany. Daimler is investing a total of approximately €800 million and will create up to 2,500 new jobs.

From 2012, the plant will built the next generation of the Mercedes-Benz A- and B-Class automobiles.