Is your favourite small car from the three pointed star in danger?
Last October, Ola Kallenius, Daimler and Mercedes CEO, admitted that the company may have overexaggerated its expansion of compact car offerings. “We went too far to cover every space into every segment,” before explicitly referring only to compact cars.
Some people believe this has led to the rumors that Mercedes may eventually leave the compact segment. However, it is simply not true. This week, the same head honcho stated to ANE that the three-pointed star is still committed to small cars because they have been “phenomenally succesful in broadening our range and growing Mercedes’ customers.” He said that they have been a huge hit financially and played a part in “lifting our overall scale.”
“We aren’t exiting this segment per se,” because we have many positions in our portfolio that produce healthy profitability. Mercedes will not keep every car alive, so it will focus on the cars that are profitable and “carefully selecting the portfolio positions within that segment.” The German luxury brand will not chase major automakers by offering a lower-priced entry-level model, discrediting rumors about a sub-A Class model.
Which cars will be staying and which ones will be going? Ola Kallenius did not go into details so we can only speculate at the moment. Are there any real needs for both an A-Class Sedan or a CLA? The CLA Shoting Brake, while more appealing than a crossover is still a niche product. Although the Kia Proceed GT is somewhat comparable, the compact wagon is unique in that it has no direct competitors.
GLA and GLB should be safe considering the SUV-hungry market and the fact that both have electric counterparts. The A Class L Sedan has a long wheelbase and is made in China. This makes it likely that the vehicle will be available in China. The B-Class is still viable, particularly since BMW committed to a second generation 2 Series Active Tourer.