Mercedes-Benz may preview a brand new vary of compact fashions later this yr based mostly on its new MMA structure, CEO Ola Kallenius mentioned.

The automaker will proceed to promote compact automobiles whilst its emphasizes gross sales of its highest-margin fashions, together with the luxurious Maybach model, the high-performance AMG division and off-road G-Class. The common promoting value of a Mercedes automobile has risen 43 p.c since 2019, and is now about 73,000 euros ($78,000).

The technique to deal with high-end automobiles has raised questions on whether or not Mercedes remains to be dedicated to the compact section, Kallenius acknowledged on Friday when presenting Mercedes’ 2022 monetary outcomes.

When requested if there can be future funding in smaller automobiles, Kallenius replied: “The brief reply is sure.”

He added: “However we are going to deal with the fashions that we imagine are probably the most profitable on a worldwide foundation. We’d later this yr even tease what that future would appear like.”

Mercedes at the moment sells seven most important compact fashions in Europe constructed on the MFA2 platform: The A-Class, B-Class, A-Class sedan, CLA coupe, CLA station wagon, GLA (plus EQA EV) and GLB (plus EQB EV).

Mercedes plans to cut back that quantity to 4 within the coming years.

In distinction to Mercedes’ future MB.EA structure for bigger automobiles, which is just for battery-electric autos, MMA is ready to accommodate internal-combustion engines, though it was designed round a full-electric powertrain. The primary autos of 4 autos on the platform is predicted to be launched in 2024.

The “entry degree” section, which incorporates about 20,000 gross sales from the Sensible model, accounted for 595,916 of Mercedes-Benz Group’s 1.04 million passenger automobile gross sales, or about 29 p.c. 

That determine represents a 2 p.c lower from 2021, whereas total gross sales have been up 5 p.c. Gross sales within the “high finish” section rose by 9 p.c and within the “core” section, have been up 8 p.c.

‘Entry luxurious’

Kallenius has described Mercedes’ new compact technique as “entry luxurious,” and plans to extend costs for compact fashions in an effort to spice up margins nearer to its total goal of 14 p.c.

Mercedes informed analysts in March 2022 that entry degree fashions would make up a a lot smaller share of total gross sales by 2026.