Mercedes Responds to Consumer Demands and Continues Production of Small Cars | Carscoops

      The Mercedes A-Class will remain in production longer, but it will not receive a new generation when it eventually ceases production.

      Mercedes has decided to extend the A-Class's production until 2028 in response to strong demand in Europe.

      Initially expected to end in 2026, the compact model's continuation is attributed to its popularity.

      Production is being relocated to Hungary to make room for new models based on the Modular Mercedes Architecture (MMA).

      Due to market demand, Mercedes has adjusted its timeline, leading executives to decide to keep the A-Class hatchback and sedan in production well beyond previous plans. Originally slated for discontinuation in 2026, the two entry-level models will now be produced until at least 2028 due to their strong appeal in Europe.

      However, there are no intentions for a completely new generation. The new CLA will take the place of the A-Class as the entry point to the Mercedes range.

      Mercedes’ head of production, Jorg Burzer, confirmed to Automobilwoche that the A-Class would be produced longer than earlier anticipated but did not provide a specific end date. He referred to this phase as the model’s "final run" and highlighted the sedan's strong market appeal in Europe.

      The current model is approaching a decade of production.

      The fourth-generation A-Class (W177) was launched in 2018 and received a refresh in late 2022. If production continues until 2028, it will reach the ten-year mark, a significant achievement in today’s rapidly evolving compact market. A second facelift could occur to ensure competitiveness against the BMW 1-Series and Audi A3, although the A-Class has already been removed from the North American market.

      Despite the two-year extension for the A-Class, Mercedes plans to discontinue the B-Class minivan in 2026, consistent with its strategy to reduce the compact lineup from seven models to four.

      According to Dataforce, the A-Class sold 27,772 units in Europe between January and May of this year, reflecting a 15 percent decrease compared to the same timeframe last year. Nevertheless, this figure remains robust enough to justify its continued production. In contrast, the B-Class sold only 5,997 units during that period, highlighting the declining demand for compact premium minivans in Europe.

      In preparation for the next generation of compact vehicles, Mercedes will move A-Class production from Rastatt, Germany, to Kecskemet, Hungary, for its final two years (2026-2028). Burzer explained that this move will "free up critical capacity needed to integrate MMA models" at the German facility.

      The first of these new compact vehicles is the CLA, which has already made a strong entrance into the market. Shortly after its launch, Mercedes added a third shift to its assembly line to keep up with demand. Built on the Modular Mercedes Architecture (MMA), the CLA is currently available as an electric sedan, with internal combustion engine versions and a more versatile Shooting Brake variant also in the pipeline.

      The CLA will soon be complemented by updated versions of the GLA and GLB SUVs, which are currently under development. One upcoming addition stands apart: the baby G-Class. Unlike its more compact counterparts, it will not be built on the MMA platform, as Mercedes intends to maintain its off-road capability, aligning it with the rugged identity of the full-sized G-Wagen.