Mercedes-Benz in May announced a new strategy that will see the automaker focus on lower volume but higher margin vehicles.
As part of the strategy, Mercedes will scale back its compact car range. CEO Ola Kaellenius has previously hinted that three members of its seven-member compact car range will be dropped when a redesigned range is introduced starting from 2025, and Germany's Handelsblatt (subscription required), citing mulitple insiders, reported on Tuesday that the three will include the A-Class sedan and hatchback, as well as the B-Class minivan.
This would leave us with the CLA-Class coupe-like sedan, CLA-Class Shooting Brake fastback wagon, and GLA-Class and GLB-Class crossovers.
The A-Class, currently in its fourth generation, is one of the best-selling vehicles in the Mercedes lineup, with sales in Europe alone reaching close to 120,000 units in 2021. However, its margins are likely too thin to overcome cost pressures automakers are facing, such as the switch to electric powertrains as well as rising prices for energy and raw materials.
Mercedes only sells the A-Class sedan in the U.S., though the model will be dropped after 2022 when an updated version is introduced for the rest of the world.
Mercedes' next generation of compact cars are confirmed to adopt a new modular platform known as the MMA (Mercedes Modular Architecture). The MMA platform is being developed for compact and small EVs, though is expected to still support internal-combustion engines in hybrid configurations. It will be Mercedes' last platform to do so, as all future platforms will be for EVs only.