Mercedes, BMW and Audi: German premium brands soon unaffordable for the middle class?

Created: 07/03/2022, 09:04

Mercedes is reportedly planning to end its cheapest model line, the A-Class.

© Ralph Peters/Imago

Mercedes could soon finally move away from the middle income bracket: the manufacturer plans to end the A-Class.

Are BMW and Audi following suit?

Munich – Mercedes will apparently part with its entry-level model series and, in addition to the B-Class, will no longer offer the A-Class in a few years: If the current reports (starting with a

article) become reality, Mercedes cars could -Benz will be unaffordable for the middle income group in a few years.

The main motivation?

Class instead of mass and earn more money.

Germany's traditional car manufacturer only wants to devote itself to the production of high-margin cars, i.e. primarily high-priced SUVs and other luxurious models.

Mercedes stamps A-Class: No new cars in the entry-level segment

The recent global crises (Corona, Ukraine war) have made the tills ring.

In 2021, the Swabians made a new record profit.

Mercedes-Benz' strategy of focusing on selling the highest-yielding vehicles due to the chip shortage in China has generated strong revenues.

This apparently prompted CEO Ola Källenius to say goodbye to the cheaper entry-level models.

Mercedes is not alone with its strategy: the VW subsidiary Audi also wants to earn even more money with luxury cars in the future and remove smaller models from the range.

This is also related to the gradual withdrawal from combustion engines: Instead, counterparts as electric cars will be sold in the future, sometimes at significantly higher prices.

Only at BMW there are still no signs that the 1 Series will disappear from the portfolio.

On the other hand, with MINI, the people of Munich have a specific small and compact car brand under their roof, which could justify such a step.

Mercedes A-Class (168 series): In the beginning, the manufacturer went swimming (“elk test”), but the model series is now selling well.

© Stefan Hässler/Imago

Mercedes as a luxury brand: Expert warns of loss of "social acceptance"

Due to the Mercedes decision against the A-Class, some experts see the danger that the group will finally say goodbye to its roots and only go after customers in the luxury car segment.

Will cars from the traditional German brand soon become unaffordable for "mere mortals"?

Germany's car pope Ferdinand Dudenhöffer speaks of a risk: In view of global tensions such as the Ukraine conflict, pictures of the super-rich are difficult to convey.

"The brand can lose social acceptance," warns the director of the Car Center Automotive Research in Duisburg.

The Baden-Württemberg state government is also not happy with the course taken by the local car manufacturer.

Instead of the A-Class, models such as the electric SUV EQA could form the entry point for Mercedes in the future, and sedans such as the CLA and C-Class (electric) also have a future.

There are indications that soon no new Mercedes cars will be available in Germany for less than 40,000 euros.

In addition, the question arises as to what the decision in favor of the Rastatt plant means: in addition to the A-class, the minivan B-class is also produced there - and also deleted.

So is a scenario similar to the bad news at Ford in Saarlouis conceivable for the brand's "compact class center"?

At least the Mercedes EQA (from almost 48,000 euros) will be manufactured there until further notice.

It is currently unclear whether other model series from the manufacturer will be added.