New Small Mercedes Will Be ‘Unlike Anything Before,’ Says Development Boss

It was part of a wider strategy to focus more on high-end vehicles in order to boost revenues without necessarily increasing volume.

A lot has changed since then and Mercedes now wants to fill the void of its entry-level duo, albeit with a single model featuring a new form factor. The information was revealed by development chief Jörg Burzer in an interview with Automobilwoche published this week. He said the new vehicle would share the MMA modular platform found in Mercedes' latest compact cars like the 2026 CLA and 2026 GLB, and launch in 2028. He also said it will be “unlike anything else that has existed before.”

A New Entry-Level Model

Burzer's comments come just months after Mercedes marketing chief Mathias Geisen revealed that the automaker was planning to replace the A‑Class (and B-Class) with an entry‑level crossover. He said the vehicle is key to retaining customers looking for an affordable Mercedes – a role the A-Class has traditionally played.

While the current A‑Class was never a big seller in the US, it remained a popular option elsewhere, particularly in Europe, where it remains on sale in hatchback form even as it has been discontinued in most other markets. It was originally slated to be phased out in Europe last year but was granted a stay of execution until 2028 – the same year the new model is set to arrive. The US only received the A-Class as a sedan, which bowed out here after 2022 but remains available in China.

The current A‑Class starts at about €36,000 (approximately $42,900) in Europe, while the new CLA, which was destined to be the brand’s new entry point, is priced closer to €50,000 ($59,500) – meaning Mercedes would have risked losing customers looking for a more affordable vehicle with the three‑pointed star once the A-Class was gone. Similarly, the new model would offer an option for those buyers in the US unwilling to step up to the CLA, which starts here at $47,250. That’s a substantial jump from the A‑Class’ final US starting price of $33,950. However, there’s no indication yet that the new model will reach these shores.

What To Expect In The New Model

Automotive News, citing anonymous sources, reported this week that the new model will blend styling cues of an SUV with those of a minivan. That makes sense, as the vehicle also has to fill the void left by the B‑Class, a compact minivan popular with both young families and older buyers.

Expect both electric and hybrid powertrains, which is supported by the MMA platform. Based on other MMA-based models, the electric versions are likely to offer single‑motor rear‑wheel-drive and dual‑motor all‑wheel‑drive options. The hybrid should pair a turbocharged 1.5‑liter inline‑4 with an electric motor positioned between the engine and transmission. Front‑wheel drive is expected to be standard for the hybrid, with all‑wheel drive available as an option. A high-performance AMG option isn't likely given the affordability focus of the model, but you never know.

Mercedes’ next‑generation compact family currently includes the CLA, CLA Shooting Brake, and GLB. A new GLA is also on the way, and the single successor to the A‑Class and B‑Class will serve as a fifth model line for the family.