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The four reasons for Mercedes not to sell the Class A anymore

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The four reasons for Mercedes not to sell the Class A anymore

He says goodbye in 2025.

A few weeks ago, a report published by the German newspaper Handelsblatt announced a radical change in the commercial strategy of the German brand, with the disappearance of several models, including the successful compact. The four reasons for Mercedes not to sell the A-Class anymore.

In the coming years, important changes are expected in the wide range of Mercedes, especially in the first step that gives access to more compact and affordable models.

The news surprised many… or maybe not: the star’s company will stop producing the Mercedes A-Class in 2025, when the current generation runs out of its business cycle. Others will also follow, such as the Class B and derivatives of the Class A, such as the sedan or the Shooting Brake variant of the CLA.

According to what is said in the report of the aforementioned German newspaper, behind this decision would be the top leader of the German brand, Ola Källenius, and the main reason is none other than the economic one.

Although, initially, the medium or long-term plans of Mercedes contemplated the remodeling of the current compact range, including the generational change of the Class A, finally the directive seems to have changed its mind for reasons of economic profitability.

The brand’s own CEO recently confirmed that this family of models will go from seven to four models in the coming years, in order to promote greater profitability and greater ROI (Return on Investment). But let’s see what are the four reasons that have driven this decision, apart from the economic one.

Four reasons not to sell more Mercedes A-Class: electric strategy

The four reasons for Mercedes not to sell the Class A anymore

Mercedes’ decision has to do with its electric strategy. The company is immersed in a process of electrification of a good part of its range and the Class A has no place in this strategy.

Its place will be taken by a fully electric version, with an SUV format and of higher quality, which will allow the tariff price to be raised substantially.

will be less in demand

The four reasons for Mercedes not to sell the Class A anymore

Although the A-Class has been and is a model of notable commercial success for Mercedes, the market shows a clear trend towards crossovers and SUVs, to the detriment of compacts and other body types, such as saloons.

In other words, the public will increasingly opt for SUVs and it will no longer be profitable to manufacture C-segment compacts with the quality standards required of a brand like Mercedes.

higher profit margin

The four reasons for Mercedes not to sell the Class A anymore

Related to all of the above and, although we have already slipped it at the beginning, there is the objective of achieving a greater profit margin. And here it is worth pausing a bit.

Until now, the distinctive car manufacturers sought to get as many sales as possible to obtain greater profits. The equation was clear: more sales = more profits. However, this will change in the coming years.

The automotive industry is moving towards electrification, but also towards the production of fewer and more expensive vehicles, which will allow brands to obtain higher profits for each vehicle sold.

Therefore, in the heads of the leaders is the idea that producing a vehicle more expensive than the Class A, but electric, larger and of better quality, will allow it to be sold at a much higher price and, thus, achieve a greater return. investment.

range reduction

The four reasons for Mercedes not to sell the Class A anymore

One last reason for Mercedes not to sell more Class A has to do with the reduction of the current range.

Over the last decade, the star brand has expanded its product range considerably. Only from Class A derive the Class A sedan, the CLA, the CLA Shooting Brake and the GLA, the crossover variant. And sometimes less is more, they think of Stuttgart.

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