Mercedes A-Class Is Replacing With a New, Affordable SUV
The Mercedes-Benz A-Class, a strong seller in Europe, won’t leave the automaker’s lineup until 2028, extending its production life despite its age. However, Mercedes is already preparing its replacement. German reports indicate a brand-new entry-level model is coming to fill the price gap between the outgoing A-Class and the more expensive CLA. The new vehicle is expected to arrive as a smaller, more affordable SUV or crossover.
A Shift from Pure Luxury to Volume
This strategic change marks a pivot away from Mercedes’ previous goal of focusing exclusively on high-margin, upscale luxury vehicles. Following a drop in profits in the first half of 2025, the brand has removed the word “luxury” from its official strategy, pushing instead toward more volume-friendly models. Board member Mathias Geisen confirmed that “In the long run, there will be an entry-level model in the world of Mercedes-Benz” to attract buyers and “bind many of our customers to the brand early on.”
Built on the New MMA Architecture
The new entry-level model will be built on Mercedes’ new MMA (Modular Mercedes Architecture) platform, which is compatible with both electric and internal combustion powertrains. By potentially adapting an existing design, such as a reworked GLA or a slightly smaller crossover, Mercedes can control development and production costs. This approach ensures the new SUV can be competitively priced, undercutting the CLA and fulfilling the strong consumer demand for smaller, more affordable luxury cars in Europe.
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