Mercedes’ smaller G-Class may be built in Hungary, not Germany, to help control production costs.
The aby G reportedly moved to MMA-based hardware, giving Mercedes EV and combustion flexibility.
Mercedes could use the G-Class badge to charge premium money for a cheaper-to-build compact SUV.
Mercedes is working on a smaller version of the G-Class, which was originally supposed to be fully electric. Then reports claimed that it was being shifted to the MMA compact car platform, which supports both electric and combustion power. Now Mercedes has reportedly awarded production of the "Baby G" to its new plant in Kecskemet, Hungary, rather than its Rastatt factory in Germany, which aligns with its push to use the plant as a manufacturing hub for its lower-cost models.
The news comes from Automotive News Europe, which cites people familiar with the matter. It indicates that even though the G-Class is one of Mercedes' flagship models, its smaller brother could be a much more affordable proposition. The report that it will be made in Hungary aligns with its previously announced target of reducing production costs by 10% between 2024 and 2027, then doubling that by 2030.
