Mercedes-Benz launched the A-Class sedan within the U.S. in 2019, hoping to lure millennial patrons to the greater than century-old model with a $30,000 entry-level mannequin.
It was presupposed to be a key gateway to the model for youthful patrons.
The A-Class “will do actually, very well … for us,” then Mercedes-Benz USA CEO Dietmar Exler declared in 2018 forward of the launch.
However waning shopper demand for automobiles and shifting company priorities are prompting Mercedes to ditch the compact sedan within the U.S. after the 2022 mannequin yr, the automaker stated in a supplier memo obtained by Automotive Information.
Regardless of hefty advertising and marketing, together with a Tremendous Bowl business, the A-Class struggled to discover a strong footing in Mercedes’ broad premium lineup and in a crossover-obsessed market.
“It launched because the market was persevering with to shift to crossovers and SUVs,” stated Jeff Schuster, president of world forecasting at LMC Automotive. “From the beginning, it was preventing an uphill battle.”
U.S. gross sales of the A-Class peaked at 17,641 when it launched in 2019. Mercedes delivered 8,108 items final yr, down 47 % from 2020.
The corporate declined to remark past the memo distributed to sellers.
Mercedes desires to give up chasing quantity and transfer extra upmarket, stated Todd Bondy, working companion at Mercedes-Benz of Oklahoma Metropolis.
“They wish to give attention to automobiles which might be going to be worthwhile for the supplier and producer,” Bondy stated. “The gross revenue common was simply by no means superb on the A-Class.”
The A-Class sedan is powered by a 2.0-liter turbocharged inline-four cylinder engine producing 188 hp and 221 pound-feet of torque. A extra highly effective AMG variant — the A35 — went on sale in 2020.
Regardless of the entry-level value, the A-Class launched with a brand new infotainment system and superior driver help applied sciences to enchantment to youthful clients.
The A-Class launched the Mercedes-Benz Person Expertise multimedia system that includes improved speech recognition capabilities, synthetic intelligence and predictive studying skills.
Mercedes had doubts in regards to the viability of a small sedan within the U.S. from the beginning.
The automaker initially hesitated to convey the A-Class to the U.S. due to its small dimension. However the success of the CLA, launched in 2013, confirmed that U.S. customers would embrace a smaller sedan.
U.S. sellers have questioned the knowledge of getting two compact sedans in a shrinking automobile market.
An indication Mercedes was evaluating the way forward for the A-Class within the U.S. got here in 2020 when the automaker stated it might transfer manufacturing of the sedan from Aguascalientes, Mexico, to Rastatt, Germany. Mercedes’ focus on the Mexico meeting plant, often known as COMPAS, is now the GLB crossover.
The discontinuation of the A-Class comes as Mercedes appears to be like to trim its bloated U.S. product portfolio. The model’s lineup has practically doubled to fifteen nameplates since 2000. Together with engine variants and physique types, the lineup within the U.S. has ballooned to greater than 100 variations.
“Mannequin proliferation for Mercedes has gotten to be an excessive amount of,” Bondy stated. “It is laborious for sellers to inventory every part.”
Within the memo to sellers, Mercedes stated the GLA compact crossover will take over as Mercedes’ entry-level mannequin. The automaker additionally stated the A-Class’ bigger sibling, the CLA sedan, will proceed for the 2023 mannequin yr.
However Bondy doesn’t count on the CLA to stay round within the U.S.
“Individuals,” he stated, “don’t purchase sedans anymore.”