Baby Mercedes G-Class probably won’t be made in Germany

It’s been almost three years since Mercedes announced plans to shorten the G-Class formula for a more compact and affordable version. Following the teaser released at the IAA show in Munich in September 2023, the off-roader has received several nicknames, including Little G, Baby G and Junior G. Mercedes itself is using the lowercase “G” in “G-Class” to distinguish it from its bigger brother, but without specifying when the model will hit the market.

All signs point to a 2027 launch, and when that day comes, the venerable Gelandewagen’s little brother could wear the Made in Hungary label. Automotive News Europe Citing people familiar with Mercedes, it has been said that the Chhoti G will be assembled at the Keskmet site. Although the company has never officially announced where the vehicle will be built, many believe it will come to life at the Rastatt factory in Germany alongside the CLA.

This was a logical assumption, given that the G-Class is expected to use the same platform as the swoopy compact luxury sedan and its more practical shooting-brake brother. The reported decision to build the vehicles at the company’s plant in Hungary apparently stems from a desire to cut costs. Mercedes has lower operating costs in Keskmet than in Rastatt, and wanted to save money by building the Mini G in Hungary rather than on its home turf.

The three-pointed star needs to spend some money before it can save it. It is investing €1 billion in the expansion of the Keskmet factory to increase annual capacity to 400,000 units, making it the largest plant in its European production network. According to the report, the Hungarian site is estimated to contribute up to 30 percent of Mercedes’ overall European production, double its current share. To get there, it is hiring about 3,000 new employees, bringing the workforce to about 7,500.

In principle, the creation of the G-Class (or whatever it is called) It may be cheaper to buy a vehicle in Hungary than in Germany. Of course, this is only true if Mercedes decides to pass on some of the savings to customers. What will they get? It’s certainly not as capable a vehicle as the full-size G. However, logic dictates that it will be far better on rough roads than a similarly sized GLB. The two may not be as closely related as everyone thinks, given that Mercedes boss Ola Källenius once said that the G is a “completely new development.”

G-Class will have gas and electric versions

Regardless of where production takes place, the new arrivals are expected to be more affordable than initially estimated. The plan was to build the G exclusively as an electric vehicle, but American dealers convinced the company to add a gas engine under the hood. Although the gap between ICE and EV models is narrowing, the mild-hybrid GLB is still around €4,000 cheaper than its electric model in Germany.

How much could it cost? We’d bet it’ll command a significant premium over the GLB (from €46,868). Plus, it will obviously sit well below the G-Class, which costs two and a half times as much at €127,591. If it is indeed an all-new model, as Mercedes executives claim, it will likely fetch a much higher asking price than the company’s current crop of compact cars without encroaching on G-Class territory.

Motor1’s Opinion: Cost-cutting decisions are being made every day throughout the industry. Automakers are looking to cut expenses wherever possible, and taking advantage of lower operating costs is no easy task. Assembling the G-Class in Hungary would be a huge blow to a German factory, but that’s how cookies crumble when companies try to save every penny.

From a consumer perspective, the alleged decision shouldn’t really bother potential buyers, given that the full-size G-Class isn’t even made in Germany. In fact, it’s not technically even made by Mercedes, as Magna Steyr handles production at its facility in Graz, Austria. That hasn’t hampered the success of the vehicle, which recorded record sales last year, with demand rising 23 percent to 49,700 units.