Thursday, October 8, 2020

Mercedes-Benz to Cut Back on "Entry-Level" Models


Mercedes-Benz says it will reduce the number of compact models it offers in the next-generation range as part of a new strategy that focuses on larger, higher margin cars.

Cars such as the A- and B-Class may have helped expand Mercedes-Benz’s appeal, but that would not be the main priority in the future. In an online strategy presentation made to analysts, Ola Kallenius, CEO of Mercedes parent Daimler admits that they “went a bit too far to cover each and every space in each and every segment”, particularly in the compact space.

Currently, Mercedes-Benz has eight so-called “compact” models riding on the Modular Front Architecture or MFA platform. Aside from the A-Class hatchback and B-Class MPV, they also have the CLA, GLA, and GLB.

Kallenius confirms that they will not drop any of its current compact models, some of which are new to the market. However, they will focus on higher-end versions of those models.

Moving forward, he confirmed that the next-generation compact models will be built on a brand-new platform: the MMA or Mercedes-Benz Modular Architecture. It will be built to take on electrification right from the start, and will also underpin its midsized models. There will be at least five models to ride on the new platform.

Similar to Volkswagen’s MEB electric platform, it will enable engineers to fit batteries under the floor in a sandwich style structure. Unlike MEB though, the Mercedes-Benz platform can still accommodate an internal combustion engine in the front. The new platform will incorporate fast charging via an 800-volt electrical system, and over-the-air updates.

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