According to a recent report, Mercedes has started developing an entry-level model that will slot below the A-Class.

Citing a source who wished to remain anonymous, Auto Car is reporting the model will be a compact crossover that is about the same size as the Volkswagen Polo. Little is known about the model, but was reportedly envisioned to battle the production versions of the Volkswagen Taigun and Land Rover DC100 concepts. As such, it is slated to adopt a number of styling cues from the G-Class and Ener-G-Force concept.

Reportedly being developed under the City-G codename, the 2016 model is rumored to ride on the JC1 (joint compact first generation) platform that is being developed with Renault-Nissan. The architecture will be highly flexible and could underpin the next-generation A-, B-, CLA- and GLA- classes.

Engine options are still a little murky, but the magazine says we can expect a new range of small capacity four-cylinder units that are currently being developed with Renault-Nissan.

Gallery: Mercedes developing a sub GLA-Class crossover - report

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