Mercedes is looking to follow the lead of key competitors like BMW and Audi.
It may require an alphabetic revision, but Mercedes-Benz is reportedly working up a new model line that would slot somewhere between the maker’s current bottom-end A-Class and the Smart car produced by parent Daimler AG.
Designed to take on competitors like the Audi A1 and a front-drive BMW model now under development, Mercedes is expected to turn to its French alliance partner Renault to help develop the small car. The X-Class would be targeted at the growing market for high-mileage microcars and be offered in a mix of body styles.
Production of the new line is expected to begin around 2018, according to Germany’s AutoBild magazine, with the X-Class expected to come in at a base price of around €20,000, or $26,000 at current exchange rates. That would create a serious challenge for the maker, something Mercedes apparently will address by turning to one of its partners for assistance.
Mercedes officials aren’t commenting on the plan but according to AutoBild’s sources, the maker would take advantage of its expanding partnership with the Renault-Nissan Alliance, the X-Class likely sharing the platform of the next-generation Renault Clio minicar.
The three-way partnership is also expected to yield new products for the struggling Smart brand, including the Forfour model expected to be unveiled sometime in 2014. Daimler will also provide a new luxury platform for use by Nissan’s Infiniti brand.
The new models would use state-of-the-art 3- and 4-cylinder engines boasting such features as direct injection and turbocharging.
Thirty years ago, Mercedes executives fiercely debated the need to downsize before finally agreeing to introduce the then-new C-Class. They have just updated the more recent A- and B-Class models to a strongly positive reception and will soon launch a spin-off of the A-Class into the U.S. market for the first time, the CLA.
Gone are the days when luxury was defined solely by the inch and pound, especially in places like Europe where crowded streets and gas prices of up to $9 a gallon have led to a rapid downsizing of the market. Nonetheless, the real challenges for Mercedes will be to maintain the level of luxury that tri-star buyers expect while also holding down the price tag for the new X-Class.
Considering the high cost of German manufacturing, Mercedes will likely turn to a “low-wage” country to produce the X-Class, and with both sedan and hatchback models anticipated, while a crossover may also be added to the mix. Production is reportedly targeted at somewhere between 100,000 and 150,000 annually.