Report: Mercedes Will Continue Making Entry-Level Small Cars With New A-Class Replacement

by Chris Teague

Published: September 23rd, 2025

report mercedes will continue making entry level small cars with new a class

Not that long ago, Mercedes announced that it would move upmarket, aiming to shift toward more expensive, exclusive vehicles. That plan didn’t last long, and the brand is now reportedly considering updating its small car with a replacement for the entry-level A-Class in the U.S. market.

The A-Class is still on sale in Europe, where it has seen strong demand, and a move to revive the nameplate in the United States would give Mercedes a much lower starting price. It costs a little over 34,000 euros in Germany, compared to almost 56,000 euros for the next cheapest model in Mercedes’ catalog, the CLA. The automaker said it is still committed to the smaller format, with an executive saying, “In the long term, there will be an entry-level model in the Mercedes-Benz world.”

Smaller cars aren’t as profitable as their more expensive counterparts, but they offer a cheaper starting point to attract younger buyers to the brand. The A-Class’ subcompact hatchback and sedan body styles haven’t been the most popular here, but a more affordable Benz likely won’t be a bad thing for sales.

Mercedes originally wanted to become an all-electric car brand by 2030, but it has since backed off on the most aggressive parts of that plan, favoring internal combustion and hybrid power for many new models. Expensive EVs haven’t resonated with buyers as strongly as automakers had hoped, so an entry-level model could help offset some of the lower sales.

[Images: Mercedes-Benz]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.

#MercedesBenz #mercedesaclass #mercedesEV

Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

More by Chris Teague

Comments

Join the conversation

2 of 10 comments

FreedMike on Sep 23, 2025

These guys used to sell the p*ss out of the CLA, despite it being trash.

1 Reply
Grandmaster T on Sep 23, 2025

Dumb.

Like Reply

Recent Comments

Andarris Here in the Toronto area I haven't seen a 2006-2012 with intact rocker pannels for over two years now. I presume everywhere around the Great Lakes is the same ? They were super cheap dhring the first two years of the pandemic - could get one with less than 85K for around $6500 certified or a little higher mileage for $5000. Glad I skipped it, even in 2021 some of the 10's &11's were displaying corosion like you'd see on a 7 year older Impala, Camry or Accord. Also the mid-model switch to EPS made me balk at the few clean ones I found.
Kjhkjlhkjhkljh kljhjkhjklhkjh I do not ever have delays. I only fly out of PDX or EUG to LAS or OAK and OGG then back .. have never been delayed in the last ?30-ish? trips to vegas/disneyland/maui/cruise ship vacations.... EUG has contract tsa so we never have any TSA delays. unsure which airports have PRIVATE contract TSA that is UNAFFECTED by the deadlock that i HOPE NEVER EVER END.
Big Al from Oz gidday mites how are yall feelin today? Want to have a barbie? We are right here gettin dee fire ready
Michael S6 The 3 Amigos better hope that the oil spike is short lived as 4-5 dollar a gallon gas would put a damper on their cash cows especially "Ford's strategic shift" of killing off the escape/Lincoln cousin. Most other automakers have a full line of vehicles with much better full economy. GM is sucking air and its Cadillac devision is mostly EV and geriatric line up of ICE cars and SUV's that were supposed to be phased out this year. The expensive gas may push shoppers toward EV but GM's horrible EV reliability is a barrier.
Tane94 I read the GM press release about first quarter sales 2026 vs 2025 and Buick is getting its butt kicked:Buick Total* 41,654 61,822 -32.6 The future is bleak for Buick.