Bartek Sikorski

After failed co-development talks with Fiat, it seems now that negotiations with BMW as well have come to an end for Mercedes-Benz. Daimler chief Dieter Zetsche has reportedly suggested that it would be hard to interlink the smaller Mercedes models with other lines, which has made it hard to find a co-development partner, although the search is not dead yet.

According to Auto Motor und Sport, product planners at Stuttgart plan to turn the A and B-class models into four variants, with a convertible and an SUV among the possibilities. These models could be built in a new factory in Eastern Europe instead of Rastatt, hinted Mercedes exec Rainer Schmückle.
Engines for these new models may come from the joint BMW-PSA venture, with BMW gaining Bluetec and urea-injection technologies from Mercedes in return.

The reason behind the extra models is because of increased competition from BMW’s Mini brand, which is about to add a new SUV model to the existing hatch, cabrio and long-wheelbase model. According to Schmückle, production numbers for the new A and B-Class family could top 300,000 units annually.
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cawimmer430

I can somewhat see a market for a convertible, but an SUV?

Here's my reponse:

"Not another SUV!"

Sounds like a flop already.

Merc1

Well you know the German see, German do policy that BMW, Mercedes and Audi have on the wall at their respective headquarters. The Audi Q3, then the BMW X1 so Mercedes feels it can't be left out. May I present to you the BLK or MLK or ALK. Logical and ridiculous all in the same breath.

M

cawimmer430

EnI

Mini-SAVs are perfect for Euro markets, not for US though.