Mercedes Reportedly Considering Its Smallest Cars for U.S. Market
By
John O'Dell, Senior Editor
With sales of its big SUVs stalled and a collapsing economy threatening to decimate its bread-and-butter luxury car audience, Mercedes-Benz is thinking the once-unthinkable: selling its subcompact A-Class (right) and compact B-Class (below) cars to Americans.
Steven Cannon, marketing vice president for Mercedes-Benz USA, told German weekly Auto Motor und Sport that his company is "looking at options to export" the next-generation A- and B-Class models to the U.S., according to a report this morning by auto industry analysts at IHS Global Insight consulting. Mercedes' smallest cars are next scheduled for updating in 2011.
In the past, Mercedes has been reluctant to drop below the C-Class in the U.S. for fear less expensive, less luxurious models would damage its upper-crust image.
Analysts say that many on the company's board of directors in German also believe the A-Class has hurt Mercedes' image in Europe since its introduction in 1997.
The company briefly considered the B-Class for the U.S. in 2006 but dropped the plan as the dollar-Euro conversion rate grew unfavorable.
But with the federal government demanding that cars and trucks sold in the U.S. achieve average fuel economy of 35 miles per gallon by 2020, and with sales of other, more-expensive models slowing down, Mercedes will have little choice.
It isn't really a matter of investigating whether to sell the smaller cheaper models here, but on when to start selling them, says an IHS Global Insight analysis prepared by the company's London office.
"Mercedes will sell the replacement A- and B-Class models in the U.S. market even if they are not especially profitable, as the upcoming stringent corporate average fuel economy (CAFE) regulations will force Mercedes' hand," the Global Insight analysts wrote.
As for corporate worries about watering down the brand image with less-expensive models; rival BMW introduced its 1 Series and the Mini to the U.S. "without any obvious damage to its premium status," the analysts said.
Mercedes' A-Class is a subcompact that comes in two body styles - three-door and five-door hatchbacks. In Europe it is sold with six engine choices -- three 2.0-liter diesels and 1.5-liter, 1.7-liter and turbocharged 2.0-liter gasoline engines -- with output ranging from 82 horsepower and 130 foot-pounds of torque in the base diesel model to 193 horsepower and 210 foot-pounds of torque in the turbo gasoline model.
Fuel economy, after converting the European cycle figures to U.S. EPA equivalents, ranges from 48 mpg for the base diesel to 33 mpg for the turbocharged gas model.
Mercedes also is using the A-class (along with the 2-seat Smart) as a platform for its battery-electric powertrain in a test being conducted in Germany.
The original A-Class, introduced in 1997, gained unwelcome notoriety for failing a Swedish auto magazine's so-called Moose test, a crash-avoidance maneuver in which the driver is supposed to swerve around a dummy moose (real ones are common obstacles on Sweden's roads.) The sudden turn made the top-heavy A-Class tip over.
Mercedes initially denied there was a problem with the car but later recalled all that ad been sold and outfitted them -- and all subsequent A-Class models -- with electronic stability control, a first at the time for a small car.
The B-Class is a stretched A-Class that comes as a 5-door hatchback -- essentially a tall sport wagon.
It is sold in Europe with a choice of engines, two diesels and three gasoline models, ranging from 1.7-liters to 2.0-liters.
The A-Class isn't available in North America, but the B-Class is sold in Canada, albeit with just two engine choices, normally aspirated and turbocharged 2.0-liter gas burners (no diesel).
Canadian pricing (in U.S. dollars) for the 2009 B-Class ranges from $21,300 to $23,900 $24,230 to $27,900.
- Posted by
- John O'Dell November 24, 2008, 11:13 AM
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- Categories:
- Diesel, Fuel Economy, Mercedes-Benz
- Technorati Tags:
- B-Class, Mercedes Benz A-Class, Mercedes Benz Small Cars
They should find a way to bring over the B-Class, but call it a Smart. That way, they could sell it at the same dealers, but wouldn't have to muddy-up Mercedes brand image. That way Daimler could sell cheap cars, get the fuel-economy credit, and keep Mercedes brand image intact. Well, as intact as it can be with the C-Class around.
Uhh.. no. Actually the B-class is sold here in Canada with a 2.0L 134 hp four banger and a turbocharged version with 193 hp. We don't get a diesel version. You can get them with a manual or CVT transmission (yes you read that right, a CVT in a Merc).
Also your pricing is too low (although it's where they SHOULD be priced at). Our dollar isn't that bad (yet). They start at $30,000 (US$24,200) for the non-turbo and $34,400 (US$27,760) for the turbo. Put on a few options (it's a Merc, so everything's extra) and you're easily into the high 30's to low 40's. Which is basically the same price range as the Audi A3. Or about $10k to $15k more than a similarly-sized Mazda 5.
I actually like the looks of the B-class both inside and out (cloth seats and all) and I've seen quite a few of them around town, so I assume they are selling well, but I think it's too high a price to pay just for having a three point star on the front grill.
Petrolhead (and everyone else)
Wow! Talk about gettign it wrong. I must have stuck on an outdated info source when I went looking for Canadian B-Class info last night. My apologies to all. I've made the appropriate changes in the copy now.
I thought the A-Class was really cool when I saw it at the Paris Auto Show in 2006. That was the car I most wanted brought to the US at the time. The price could be a problem in the US, but I would definitely check them out!
If MB had kept Chrysler, that would have solved their brand image issues. Still, marketing can go a long way in differentiating products within the same brand. With fuel and pollution concerns, the US car market will change to make smaller cars more acceptable, even for luxury brands.
I have seen a number of B-Class cars with Ontario plates at various times in the Northeastern US, they have a very appealing stance and look.
While Mercedes-Benz may wish to protect their brand in the US by remaining more upscale, I think they would do a lot better by just simplifying their systems and making their cars reliable for a change.
Ever since about 1995 they have cheapened their construction while adding complex electronics that predictably fail, infuriating their customers. I know several long-time Benz customers who have been burned and have left the fold. The cars used to be overbuilt and impressively durable and reliable, now they are ordinary and trouble-prone.
A simple B-Class, properly executed, might help fix perceptions while meeting the fuel economy and green standards being imposed on the industry. Sales volumes will build as the market embraces refined and usefully roomy hatches and wagons once again.
But they have to continue working to fix the rest of the product line as well.