Mercedes-Benz has announced significant changes to its vehicle lineup, confirming that the A-Class and B-Class models will be discontinued starting in 2026. This decision was communicated by Chief Technology Officer Markus Schäfer during an interview with an Italian automotive publication.

As part of its strategic realignment, Mercedes plans to reduce the number of compact models from seven to four, prioritizing models that offer greater profitability.

The A-Class, known for being an accessible entry point into the Mercedes brand, has struggled with overall profitability despite its popularity.

The B-Class, favored by older consumers for its elevated seating position and practicality, has also not met profitability targets.

Following the discontinuation of the A-Class and B-Class, the new CLA model will assume the role of the entry-level offering for the brand.

The CLA will be introduced in both electric and hybrid variants, and plans for a Shooting Brake version are also underway.

Mercedes intends to retain its popular SUV models, the GLA and GLB, within its compact range.

Further plans include the development of a smaller version of the iconic G-Class, which will be built on a completely different vehicle platform.

The EQ series of electric models will become standard, with badges such as GLA and CLA available in both electric and internal combustion engine variants.

The shift away from the A-Class and B-Class highlights Mercedes' focus on luxury within the premium segment.

Currently, the A-Class is priced at approximately €35,000, while the new CLA is expected to start significantly higher at around €45,000, reinforcing the brand's emphasis on luxury and exclusivity.

These developments signal a transformative period for Mercedes-Benz, transitioning away from its compact model era towards a future defined by greater luxury and technological advancements.