German Handelsblatt: Luxury strategy: Mercedes is dropping the A-Class – a turning point that triggers criticism004549

A-class sedan from Mercedes-Benz

From the middle of the decade, the group will no longer build the model series.

(Photo: Daimler AG)

For decades, size was what counted most at Mercedes-Benz. The dream of the “Welt AG” with Chrysler burst abruptly, but the brand with the three-pointed star was later able to console itself by selling more cars than arch-rival BMW.
In order to permanently dominate the premium league, Mercedes expanded its model range to more than 40 makes and derivatives. But this strategy is now over.
CEO Ola Källenius breaks with the sales mantra of his predecessors. At the end of May, the Swede announced that he would be dropping three out of seven compact cars. The investments should flow into models that generate high profit margins.
Marge comes before quantity in the future. So far, Källenius has only left open which models will be eliminated and which will remain.

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The Handelsblatt has now learned from four insiders that Mercedes will in future concentrate on building the following models: CLA Coupé, GLA, GLB and CLA Shooting Brake.

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