It seems that Mercedes can’t wait to show us its future compact family – dubbed “Entry Luxury” – with an early preview expected before the end of 2023. Four new models will ride on the new MMA architecture that will reportedly be compatible with both fully electric and internal combustion powertrains.
Speaking to Automotive News Europe, Mercedes CEO Ola Kallenius re-confirmed their commitment to the compact segment as the company puts more emphasis on the significantly more profitable high-end models. The CEO said that Mercedes will still invest in smaller cars, but “focus on the models that we believe are the most successful on a worldwide basis”.
Read: Baby Mercedes G-Class Could Arrive Around 2026
Mercedes has pledged to reduce the number of compact models in its range from seven to four. According to the latest reports from the German newspaper Handelsblatt, those that will most likely survive in the new era are the CLA, the GLA/EQA, and the GLB/EQB, alongside a new rugged-looking SUV dubbed the “baby G-Class”. This scenario is in line with an earlier report about the discontinuation of the A-Class (hatchback and sedan) and B-Class after 2025.
As with most vehicle architectures these days, the MMA was developed with fully electric powertrains in mind. However, the platform is also expected to be compatible with internal combustion engines, allowing Mercedes to offer hybrid options for its models alongside the pure EVs, at least for a few more years and while ICE is relevant in Europe.
What we know for sure is that members of the “Entry Luxury” family will move upmarket with more premium materials and high-tech equipment including the new Mercedes-Benz Operating System (MB.OS). This will justify increased prices compared to the current compact lineup, and bring profit margins closer to the overall target of 14%.
While Mercedes is keen on talking about the four upcoming MMA-based models, the seven compact models of the current range are all getting their mid-lifecycles facelifts in 2023. We have already seen the updated A-Class and the CLA / CLA Shooting Brake, with the B-Class, GLA, and GLB benefiting from a similar treatment in the next few months as proven by our scoop stories.
In 2022, sales of Mercedes’ compact models together with the smart brand accounted for 595,916 units. This represents 29% of the overall 2.04 million sales of the Mercedes-Benz Group, which is 2% down compared to 2021 but remains a significant amount. The company projects that by 2026, sales of the “Entry Luxury” models will account for a “much smaller” share of overall sales, focusing on profitability instead of volume.
The first production model from the “Entry Luxury” lineup is expected to debut in 2024, likely with a sleek four-door sedan bodystyle as pictured in the official teaser from last year.
