June 18, 2008 8:40 PM by Frank de Leeuw van Weenen Filed Under: Mercedes-Benz
Today Mercedes officially announced that the compact model line-up will double from the A and B Class to four distinct new models. Mercedes already has a substantial amount of the compact premium market share but is looking to corner the market. Maybe Mercedes thinks that the compact segment will boom with the current oil prices, its what we think in any case. After all, the American market has seen a strong shift to smaller cars over the past months it could just become a global trend.
The Mercedes A and B class will be replaced with a brand new generation model while two new variants will join the line-up. In order to achieve this Mercedes has invested Euro 600 million in its Rastatt plant and has plans to build an entirely new plant in Kecskemt, Hungary.
"Mercedes-Benz is going to offer an even wider range of exciting premium cars – with the high levels of comfort, safety and overall quality that are characteristic for the brand – in the particularly fuel-efficient compact-car segment. Moreover, our expanded product range will allow us to tap into new customer groups and open up new market regions," commented Dr Dieter Zetsche.
The Mercedes A and B Class have recently undergone a facelift leaving us with a timeframe of about 2 to 3 years before the new generation models will be launched. Mercedes' new 4 cylinder diesel engine will definitely make it into the range, the new generation engine will be launched this year already.
Mercedes-Benz extends its model range of premium compact cars
Four distinct new models planned for the the compact-car segment
Investments of €600 Million in Rastatt plant enable long-term capacity utilization
Additional plant to be built Kecskemét, Hungary to boost competitiveness and access new markets
Improvements in efficiency and structural design ensure long-term profitability of the new vehicle generation
Mercedes-Benz will have an even stronger presence in the compact-car segment in the future, with a product line-up of four instead of today’s two vehicles. Investments of €600 Million in the Rastatt plant will secure the long-term capacity utilization of the plant. In order to sustainably boost its competitiveness, as well as to access new markets and create additional production capacities, Mercedes-Benz has also decided to built a new plant in Kecskemét, Hungary.
Today, Mercedes-Benz is already the most successful premium manufacturer of compact vehicles with its A and B-Class. The successor generation will include product characteristics that are already popular with customers today – such as generous interior space and an elevated seating position. In addition, new vehicle variants will win additional target groups for the Mercedes-Benz brand.
"Mercedes-Benz is going to offer an even wider range of exciting premium cars – with the high levels of comfort, safety and overall quality that are characteristic for the brand – in the particularly fuel-efficient compact-car segment. Moreover, our expanded product range will allow us to tap into new customer groups and open up new market regions," commented Dr Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.
"We are continuously investing in vehicle manufacturing in Germany: in addition to the recently announced expansion of the Sprinter van production in Düsseldorf und Ludwigsfelde, we will now invest some €600 million in Rastatt for our new generation of compact cars," said Dr Zetsche.
"At the same time, we are planning a new plant in Hungary to boost our competitiveness and to gain access to the potential of the Eastern European markets," Dr Zetsche added.
The long-term cost-effectiveness of the expanded product range will be safeguarded by the continuous progress made in the areas of vehicle efficiency and structural design. There will be a high level of technical integration among the four new vehicles which will are also going to benefit from the modular system used by the other Mercedes passenger-car model series. A case in point is the new generation of Mercedes-Benz 4-cylinder diesel engines which is having its market premiere in 2008 and which will also be available for use in the new vehicles.
In the context of the expansion of its product portfolio, Mercedes-Benz Cars has also decided on the manufacturing strategy for the new generation of vehicles. In addition to using the existing capacity of the Rastatt plant, the company will built a new plant in Kecskemét, Hungary. The production network between the two plants will contribute significantly to the company's efficiency and competitiveness.
"Rastatt is an important and proven part of our Mercedes-Benz production network; production of the next generation of premium compact cars from Mercedes-Benz will see the plant working at its full capacity," said Rainer Schmückle, Chief Operating Officer of Mercedes-Benz Cars.
"In terms of all business aspects, the future plant in Kecskemét clearly offers the best perspectives. The site meets all the high quantitative and qualitative requirements for the successful establishment of a Mercedes-Benz production," added Mr Schmückle.
"Of course," he continued, "both sites have to contribute to the cost-effectiveness of our involvement in this vehicle segment which is the subject of very intense competition."
Kecskemétis located approximately 80 km from the outskirts of Budapest. In order to build the additional facility, Mercedes-Benz is planning to invest some €800 million locally in Kecskemét and to create up to 2,500 new jobs for people in the region. Representatives of Daimler AG and the country of Hungary as well as the city of Kecskemét intend to sign a memorandum of understanding concerning this project in the coming weeks.
WCF i swear you make me laugh sometimes. ok the USA might soon be switching to compact cars, but it's not as if the rest of the world has been driving V8 petrol SUVs the whole of this time. we already buy small cars - look to the success of the BMW Mini and Fiat 500 if you don't believe me... global trend? you guys crack me up!
mercedes benz does not have to dilute its brand image by making this subcompacts, heres the answer MB make your cars the same as you are now but the difference they run on regular unleaded instead of premium!! theres a vowel I would like them to buy and solve the problem
Some day brings good news. Hi MB!