Mercedes Casts Doubt On A-Class Future As It Chases Profit, Not Volume

It was only previous month when Autocar noted on the uncertainty of a next-generation BMW 1 Series and now it’s performing the very same with its archrival. Indeed, the long term of the Mercedes A-Class also looks grim, in accordance to a statement produced by Mercedes CEO Ola Källenius currently. The British journal cites the company’s head honcho speaking in the course of the Money Times’ Upcoming of the Motor vehicle Summit about the products lineup.

Full details with regards to the portfolio will be disclosed up coming week all through a meeting with capital traders. Even so, the Swedish executive instructed compact cars are not a precedence for the three-pointed star. Somewhat than chasing volume with models like the A-Course and its many derivatives, it desires to aim on even bigger and more high priced automobiles. Why? Mainly because these have substantially higher earnings margins.

For the incredibly same purpose, the restricted offer of semiconductors has been mostly directed to C-Class styles and upward since these are the moneymakers. Källenius reported Mercedes experienced taken the final decision to “chase price for our prospects and company” alternatively of heading just after volume even prior to the chip crunch. The source constraints have been a blessing in disguise to some extent as it proved to the German luxurious automaker it could target more on the higher-close styles.

Mercedes A Class Sedan 2 830x623

“We had now begun having actions in our channel management to make certain we watched the high quality of our margins and pricing ability – and in that regard, the supply constraints have been like an unwelcome experiment. And it’s correct, you can see the profitability has been extremely sturdy in the course of these occasions.”

The A-Course is not just a person model as it consists of a whole family members of compact cars. We’re conversing about the usual A-Course hatchback, A-Class Sedan, and the CLA serving as a sleeker sedan to rival the BMW 2 Sequence Gran Coupe. In addition, Mercedes tends to make and sells a long-wheelbase A-Class Sedan in China where it competes with the BMW 1 Series Sedan.

Then there is the CLA Taking pictures Brake, which is fundamentally a attractive wagon without the need of a immediate rival in the luxurious section. Rounding off the record of types are the common GLA compact crossover and the 2 Collection Active Tourer-combating B-Class minivan. Earlier this 12 months, Mercedes declared it would discontinue the A-Class Sedan in the United States immediately after the 2022 product year. Which is not to say each individual single compact vehicle will be phased out just after the current technology, but don’t be way too astonished if some of these entry-stage choices will get the proverbial axe.

As a remaining be aware, Audi has now announced the subcompact A1 and Q2 will not dwell to see a subsequent generation.

Supply: Autocar