STUTTGART, Germany — Mercedes-Benz Chairman Dieter Zetsche has officially confirmed plans that will see the company's entry-level A- and B-Class models relaunched in 2011 with a range of four body styles. The move should provide a much broader reach and a more competitive lineup to go up against the likes of the Audi A3 and the BMW 1 Series.
The new models have been thoroughly re-engineered with new four-cylinder gasoline and diesel engines and a new front-wheel-drive platform. With the change, Mercedes will reduce production complexity and lead to greater profitability than is possible with today's expensive-to-produce A- and B-Class. Mercedes-Benz is also establishing a new low-cost factory in Hungary in which to build them that will supplement the existing site in Germany.
In describing Mercedes-Benz's future small-car lineup, Zetsche says: "The successor [to the A- and B-Class] will include characteristics that are already popular with customers today, such as generous interior space and an elevated seating position. In addition, new variants will win additional target groups for the Mercedes-Benz brand."
Mercedes-Benz is not revealing what format the new models will take. However, insiders contacted by Inside Line confirm styling proposals for both three- and five-door hatchback models have already been signed off. They are planned to go up against the popular Audi A3 and BMW 1 Series, they say.
Accompanying them will be a roomy MPV that will replace today's B-Class. It is expected to closely resemble the strong-selling Volkswagen Touran in dimensions, offering the choice of a five- or seven-seat interior layout. Also planned is a new entry-level off-roader to lock horns with the upcoming Audi Q3 and BMW X1. Known internally by the code name X170, it will likely offer the choice of front-wheel or four-wheel drive.
"Mercedes-Benz is going to offer a wider range of cars with the high levels of comfort, safety and quality that are characteristic for the brand in the particularly fuel-efficient compact-car segment," commented Zetsche.
Also under consideration but not yet officially part of the new lineup is an entry-level cabriolet based around the three-door hatchback, along with a four-door sedan.
Mercedes-Benz has decided to ditch the front-wheel-drive sandwich platform, in use since the A-Class first came out in 1996. That change is a crucial component of the decision to build a broader range of small cars in place of the existing entry-level lineup.
The sandwich structure, originally designed to accept batteries within its flat floor, will be replaced by a more conventional front-wheel-drive platform that has been developed in-house — and is also said to be cheaper to produce.
"The advantage of the new platform is it allows a lower seating position," says an insider privy to Mercedes-Benz's small-car plans. "Until now, we have been compromised in terms of the number of models we could base on the structure, owing to the height of the floor."
The decision to go with a new platform also heralds the end of Mercedes-Benz's four-cylinder M266 (gasoline) and OM640 (diesel) engines. Produced expressly for the A- and B-Class, their unique design allows them to be mounted below the floor for improved crash protection. Instead, the new models are set to run new four-cylinder M270 (gasoline) and OM651 (diesel) engines closely related to those found in the C-Class.
It's a move that Mercedes-Benz says will provide greater production flexibility and much improved economies of scale, says our source. "There will be a high level of technical integration among the four new vehicles, which will are also going to benefit from the modular system used by the other Mercedes passenger-car model series. A case in point is the new-generation of Mercedes-Benz four-cylinder diesel engine, which is having its market premiere in 2008 and which will also be available for use in the new vehicles."
Other driveline developments include plans to equip each of the new models with fuel- and emission-saving features such as start/stop and brake regeneration. Internal documents viewed by Inside Line suggest Mercedes-Benz is already well advanced on plans to provide its new small cars with a hybrid drive option using the lithium-ion battery technology to be launched in the S400 hybrid next year.
Despite the decision to base its new models on a new front-wheel-drive platform, Mercedes-Benz does not rule out the sandwich structure's use on electric vehicles in the future. "There is no better basis for an electric car," says Thomas Weber, head of research and development, adding, "I don't think you have heard the last of it yet."
To provide sufficient production capacity for its new price-leading models, Mercedes-Benz says it has earmarked a further €600 million ($932 million) to upgrade its existing Rastatt manufacturing plant in southern Germany. In a landmark move, the German carmaker also plans to establish a new low-cost plant in Kecskemét, Hungary, that it says will "boost competitiveness" and provide "access to new markets."
Intriguingly, Mercedes is not ruling out sending the A- and B-Class to the U.S. if fuel prices remain high. "Why not," Weber mused when asked the question.
What this means to you: A big name is thinking small in a big way. — Andreas Stahl, Correspondent
The new models have been thoroughly re-engineered with new four-cylinder gasoline and diesel engines and a new front-wheel-drive platform. With the change, Mercedes will reduce production complexity and lead to greater profitability than is possible with today's expensive-to-produce A- and B-Class. Mercedes-Benz is also establishing a new low-cost factory in Hungary in which to build them that will supplement the existing site in Germany.
In describing Mercedes-Benz's future small-car lineup, Zetsche says: "The successor [to the A- and B-Class] will include characteristics that are already popular with customers today, such as generous interior space and an elevated seating position. In addition, new variants will win additional target groups for the Mercedes-Benz brand."
Mercedes-Benz is not revealing what format the new models will take. However, insiders contacted by Inside Line confirm styling proposals for both three- and five-door hatchback models have already been signed off. They are planned to go up against the popular Audi A3 and BMW 1 Series, they say.
Accompanying them will be a roomy MPV that will replace today's B-Class. It is expected to closely resemble the strong-selling Volkswagen Touran in dimensions, offering the choice of a five- or seven-seat interior layout. Also planned is a new entry-level off-roader to lock horns with the upcoming Audi Q3 and BMW X1. Known internally by the code name X170, it will likely offer the choice of front-wheel or four-wheel drive.
"Mercedes-Benz is going to offer a wider range of cars with the high levels of comfort, safety and quality that are characteristic for the brand in the particularly fuel-efficient compact-car segment," commented Zetsche.
Also under consideration but not yet officially part of the new lineup is an entry-level cabriolet based around the three-door hatchback, along with a four-door sedan.
Mercedes-Benz has decided to ditch the front-wheel-drive sandwich platform, in use since the A-Class first came out in 1996. That change is a crucial component of the decision to build a broader range of small cars in place of the existing entry-level lineup.
The sandwich structure, originally designed to accept batteries within its flat floor, will be replaced by a more conventional front-wheel-drive platform that has been developed in-house — and is also said to be cheaper to produce.
"The advantage of the new platform is it allows a lower seating position," says an insider privy to Mercedes-Benz's small-car plans. "Until now, we have been compromised in terms of the number of models we could base on the structure, owing to the height of the floor."
The decision to go with a new platform also heralds the end of Mercedes-Benz's four-cylinder M266 (gasoline) and OM640 (diesel) engines. Produced expressly for the A- and B-Class, their unique design allows them to be mounted below the floor for improved crash protection. Instead, the new models are set to run new four-cylinder M270 (gasoline) and OM651 (diesel) engines closely related to those found in the C-Class.
It's a move that Mercedes-Benz says will provide greater production flexibility and much improved economies of scale, says our source. "There will be a high level of technical integration among the four new vehicles, which will are also going to benefit from the modular system used by the other Mercedes passenger-car model series. A case in point is the new-generation of Mercedes-Benz four-cylinder diesel engine, which is having its market premiere in 2008 and which will also be available for use in the new vehicles."
Other driveline developments include plans to equip each of the new models with fuel- and emission-saving features such as start/stop and brake regeneration. Internal documents viewed by Inside Line suggest Mercedes-Benz is already well advanced on plans to provide its new small cars with a hybrid drive option using the lithium-ion battery technology to be launched in the S400 hybrid next year.
Despite the decision to base its new models on a new front-wheel-drive platform, Mercedes-Benz does not rule out the sandwich structure's use on electric vehicles in the future. "There is no better basis for an electric car," says Thomas Weber, head of research and development, adding, "I don't think you have heard the last of it yet."
To provide sufficient production capacity for its new price-leading models, Mercedes-Benz says it has earmarked a further €600 million ($932 million) to upgrade its existing Rastatt manufacturing plant in southern Germany. In a landmark move, the German carmaker also plans to establish a new low-cost plant in Kecskemét, Hungary, that it says will "boost competitiveness" and provide "access to new markets."
Intriguingly, Mercedes is not ruling out sending the A- and B-Class to the U.S. if fuel prices remain high. "Why not," Weber mused when asked the question.
What this means to you: A big name is thinking small in a big way. — Andreas Stahl, Correspondent
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