Mercedes-Benz is signaling a clear pivot in its compact car strategy as part of its broader push to elevate brand prestige while expanding its electrified lineup. The 2022 discussions around a new compact sedan, positioned to sit alongside the CLA, point to a model that would begin production in Kecskemét, Hungary, with a projected start in 2024. The project carries a substantial investment, estimated at 1 billion euros, underscoring the importance of a scalable, modular architecture for future small cars.
A teaser image released by Mercedes-Benz depicts a fast, four-door silhouette designed by Gorden Wagener, the company’s chief designer. Mercedes-Benz CEO Ola Källenius indicated that the new model would be shown to the public soon, reinforcing the automaker’s plan to keep the market engaged with fresh design and technology cues.
In discussions with Automotive News Europe, senior Mercedes-Benz executives addressed the future of compact cars within a strategy aimed at increasing prestige while offering competitive, contemporary vehicles. The leadership noted a measured approach: there will be a future for compact models, but the company will prioritize the segments with the strongest potential to resonate globally and sustain growth. The message was consistent: Mercedes-Benz will reveal the precise vision for its compact lineup in due course.
The forthcoming small car is designed to ride on Mercedes-Benz’s new modular platform, referred to as MM. This platform will underpin a family of powertrains that includes both all-electric configurations and hybrid versions, aligning with the brand’s broader electrification goals and the demand for efficient, lower-emission options in dense urban markets across North America and Europe.
As part of a broader restructuring, Mercedes-Benz plans to retire the current A-Class and B-Class offerings and replace them with the new model family while maintaining the CLA family, the CLA Shooting Brake, and the GLB as the core compact crossovers. This consolidation aims to simplify the lineup and focus investment on models that deliver higher perceived value and stronger global appeal. The pricing strategy associated with the new compact is expected to reflect the enhanced manufacturability and technology, potentially positioning the model at a higher tier in the value spectrum. In contrast, earlier, simpler configurations may be phased out as the company recalibrates its product portfolio to align with a more premium, technology-forward image.
Mercedes-Benz remains committed to delivering vehicles that balance performance, efficiency, and luxury. The new compact and its MM platform are central to the brand’s plan to offer electric, hybrid, and future-ready powertrains while preserving a distinct design language that differentiates Mercedes-Benz in crowded markets. The company’s executives emphasize that the shift toward more capable and more technologically advanced small cars is about strengthening the core values of luxury, innovation, and reliability that customers expect from the brand, even as the model lineup evolves to meet changing customer preferences and regulatory requirements in North America and beyond.
Image: Mercedes-Benz