Mercedes-Benz Eyes Luxury Market with Cheaper Models Set to be Axed

Stuttgart (dpa) – Carmaker Mercedes-Benz is to concentrate on luxury vehicles because these offer the best chances of “economic growth and job security,” chief executive Ola Källenius said on Thursday at an online conference.

The German manufacturer wants to upgrade its entry-level models in future, but there will only be four body variants in the next generation instead of seven at present, Källenius said.

This could spell the end of A- and B-class models, though the company head declined to directly answer which of the cheaper models would be dropped. “I will leave the rest to your imagination,” he said.

A high demand for luxury cars from the S-Class range as well as the Mercedes-Maybach and AMG lines is driving the decision.

The carmaker sold around 2 million cars in 2021, 5% fewer than the previous year, mainly due to semiconductor supply issues.

Källenius said that in the mid-size luxury segment a new E-Class would be launched next year. An additional model specially tailored to China is also planned, he added, this being Mercedes’ most important market.

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Carmaker Mercedes-Benz is to concentrate on luxury vehicles because these offer the best chances of "economic growth and job security," chief executive Ola Källenius said on Thursday at an online conference.

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