04:18 20-11-2025

Mercedes-Benz rethinks strategy with a new entry model on MMA

Mercedes-Benz is rethinking its course and moving away from a narrow luxury-only focus. According to Handelsblatt, the company is pivoting back to premium models across a wider price range. The shift follows a sharp profit decline: in the first nine months of 2025, earnings before interest and taxes fell by almost 60 percent, and sales weakened in key markets. Against that backdrop, the change looks like a pragmatic correction rather than a retreat.

The board is developing a new entry model that will be close to the A-Class in price and format. Production is planned for Kecskemét, where manufacturing costs are lower. The car will be a five-door hatchback aimed at younger buyers, with the idea of gradually guiding them into higher segments. Bringing back a true gateway model is a tried-and-true way to rebuild volume without dulling the brand’s edge.

The newcomer is based on the MMA platform, designed primarily for electric vehicles. This architecture underpins the electric CLA and will serve the future CLA Shooting Brake, as well as the next GLB and GLA expected in 2026. Mercedes is also considering expanding vehicle supplies for Sixt. The approach keeps the lineup cohesive while leaning into the brand’s EV-first engineering path.