Mercedes Thinking Big With Small Cars

Daimler AG expects a coming range of A- and B-segment vehicles will expand the customer base of its Mercedes-Benz brand. Mercedes customers are defined by a function of pricing, concedes Dieter Zetsche, Daimler CEO and head of the luxury brand's global car division. But the popularity of pre-owned Mercedes vehicles, as demonstrated by younger consumers, suggests a ripe market for new models that are

Daimler AG expects a coming range of A- and B-segment vehicles will expand the customer base of its Mercedes-Benz brand.

Mercedes customers are defined by a “function of pricing,” concedes Dieter Zetsche, Daimler CEO and head of the luxury brand's global car division. But the popularity of pre-owned Mercedes vehicles, as demonstrated by younger consumers, suggests a ripe market for new models that are lower-priced but similarly upscale, he tells journalists.

So Mercedes is responding with next-generation platforms of current A- and B-Class models, none of which are sold in the U.S. “Out of this new lineup, we will be able to offer some of these four models in the U.S. as well,” he adds.

Zetsche is short on details, except to say the U.S. will not see an A-segment vehicle with a conventional powertrain. However, an electric vehicle is possible, he says.

The debut of a B-segment fuel-cell car in the U.S. next year is unrelated. Announced at the Detroit auto show in January, the plan calls for a small test fleet.

Zetsche is mum on timing, but current A- and B-Class models are nearing the end of their lifecycles.

The new Mercedes models would not compete with Daimler's Smart-brand Fortwo 2-seat microcar, Zetsche says. Launched last year, the tiny Fortwo is languishing despite growing consumer interest in improved fuel economy.

Through October, sales totaled 13,082 — 35.8% below like-2008's tally of 20,392.

Mercedes U.S. sales through October totaled 101,250, 25.8% behind like-2008's tally, according to Ward's. But global deliveries for the month ran 4% ahead of prior-year, the first time this year the tri-star brand was in positive sales territory, according to Daimler totals.

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