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The small German luxury car may not be renewed for another generation, as market conditions lure manufacturers towards more profitable segments.
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Mercedes-Benz could be planning to cull the A-Class small car from its line-up, new comments from CEO Ola Källenius suggest.
The German car giant has offered the model since 1997 across four generations, with the latest model available in both four-door sedan and five-door hatchback guises.
However, the profitability of compact cars has declined in recent years due to heightened development costs, amid the market’s shift towards SUVs.
This has forced many manufacturers to increase prices – as seen with the Toyota Yaris and Volkswagen Polo city cars – or consider axing models entirely.
“We will talk more next week [at an investor event], but it’s not our goal to be a competitor of the volume producers,” Mr Källenius said at a Financial Times even this week (as quoted by Autocar) when asked about the A-Class.
“That’s not what the Mercedes-Benz brand stands for, so stay tuned as far as our product portfolio is concerned … we would rather be looking up than down.
“Even before the supply constraints started, we had made it clear that our strategy isn’t to chase volume but to chase value for our customers and company.”
A spokesperson for Mercedes-Benz in Australia was unable to provide further information on plans when approached by Drive.
It’s highly unlikely the A-Class would be pulled from sale before the end of its lifecycle in approximately 2025, however the brand may opt not to develop a replacement.
In 2021 Mercedes-Benz sold 3793 examples of the A-Class locally, representing approximately 13 per cent of its 28,348 total sales.
The 2022 Mercedes-Benz A-Class range is priced from $49,890 plus on-road costs, following the brand’s move to a non-negotiable pricing model earlier this year.
The latest comments come less than a month after reports emerged BMW is considering axing its small, petrol-powered, front-wheel-drive models including the 1 Series.
He has maintained a primary focus on industry trends, autonomous technology, electric vehicle regulations, and local environmental policy.
As the newest addition to the Drive team, William was brought onboard for his attention to detail, writing skills, and strong work ethic.
Despite writing for a diverse range of outlets – including the Australian Financial Review, Robb Report, and Property Observer – since completing his media degree at Macquarie University, William has always had a passion for cars.
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