After weeks of speculations and confusion, Daimler chose the town of Kecskemet in Central Hungary as the future location for its new Eastern European factory in the detriment of Romania and Poland, Autonews informs. Daimler will most probably produce Mercedes Benz A Klasse and B Klasse models and will invest some 800 million euro.

Daimler Executive Director Dieter Zetsche declared that the company plans to increase its competitiveness and have better access to Eastern European markets. The new factory, located at some 80 km away from Hungary will create some 2,500 jobs. Annually, it will produce over 100,000 cars.

Daimler officials announced that they would invest some 600 million euro to expand the production capacity of Rastatt factory in Germany where A Klasse and B Klasse models are currently set up.