Dhe step is symbolic, but in the Mercedes group the upcoming end of the A and B class hardly causes any displeasure. Ergun Lümali, Chairman of the General Works Council at Mercedes-Benz, said on Monday that it was “essential” that the new luxury orientation “is not implemented to the detriment of the employees”. For him it was clear: “The capacity utilization of the German plants must be guaranteed.” He did not criticize the model strategy.
Michael Häberle, head of the works council at the main plant in Untertürkheim, said on Monday in an interview with the “Stuttgarter Nachrichten” and the “Stuttgarter Zeitung” that he doesn’t think it’s wrong to focus on models that are in demand on the market. “The board of directors’ announcement is not to have less production all of a sudden, but to want to continue to grow with the luxury strategy,” said Häberle, when asked about the demise of the A and B classes.
“I’ll leave that to your imagination”
Mercedes had already indicated the end for the two model series by the middle of the decade in mid-May, when the group announced a focus on its luxury strategy. Three out of seven models in the new “Entry Luxury” area should be eliminated. What those are, “I’ll leave it to your imagination,” said Mercedes boss Ola Källenius at the time.
Since then there have been several reports, including the “Handelsblatt” on Monday, that it is the A and B class. A spokesman declined to comment on the reports. For reasons of competition, portfolio decisions are only discussed shortly before market launch. “What we’re going to have in the future is going to be even better,” he said.
A Mercedes A-Class lies on its roof near Stockholm after a failed moose test in 1997.
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Image: picture alliance / dpa
However, he denied a report by the “Handelsblatt” that the model series were unprofitable. “The A and B classes are profitable,” he said. Even if there are of course more profitable ones.
How expensive is the cheapest Mercedes?
In general, Mercedes wants to reduce the importance of the entry area. The segment’s share of total sales is expected to be a quarter lower in 2026 than in 2019. Three years ago, Mercedes sold 680,000 cars in the entry-level segment, last year it was only 570,000. There are no plans to increase sales here again.
Instead, the group wants to grow primarily in the most expensive segment. Models such as the S-Class, the electric S-Class EQS or the Maybach brand are expected to account for a good 17 instead of 11 percent of total sales in 2026, an increase of three fifths. Total sales are expected to grow by 5 percent each year.
All of this leads to the fact that the cheapest Mercedes car is becoming more and more expensive. The average sales price in the entry-level segment is expected to increase by a fifth. The cheapest Mercedes is still available for less than 30,000 euros.
