The Cheapest Mercedes Will No Longer Be Made In Germany

Mercedes is keeping the A-Class but is moving production to Hungary.

2023 Mercedes A-Class

Adrian Padeanu

By: Adrian Padeanu

Jan 8, at 3:30am ET

Add Motor1.com as a preferred source in Google

Comment

The Breakdown

Mercedes is extending the life cycle of the A-Class to 2028.
Production of the entry-level model is relocating to Hungary.
A successor is planned, positioned below the CLA.

It was less than a year ago that Mercedes announced the A-Class would be discontinued as part of a decision to scale back its compact-car lineup. However, the company’s entry-level vehicle is getting a new lease on life, with production extended until 2028. It won’t carry the “Made in Germany” label anymore, as output is moving from the Rastatt factory to the Kecskemet site in Hungary from the second quarter of the year.

The surprising decision was announced by a Mercedes spokesperson in a statement to German business newspaper Automobilwoche. The reasoning centers on freeing up production capacity at Rastatt, where the new CLA and CLA Shooting Brake are built. Additionally, the German plant will assemble the next-generation GLA starting in 2027, offering both combustion engines and electric drivetrains. The latter will replace today’s EQA, following Mercedes’ decision to merge its ICE and EV lineups.

While the A-Class is continuing longer than initially planned, the B-Class is not. Mercedes will gradually phase out its smallest minivan without developing a direct successor. A more interesting change in the compact lineup will be the addition of a small G-Class with both ICE and EV flavors. The “Little G” is expected to break cover either this year or in 2027.

One of the oldest models carrying the three-pointed star, the A-Class will be a decade old when production ends in 2028. Mercedes initially didn’t plan a replacement, but a new entry-level model positioned below the CLA is coming. It’s too soon to say whether it will be sold in the United States, where the A-Class was retired after the 2022 model year.

It’ll be interesting to see whether the A-Class successor will be offered strictly as a five-door hatchback or if Mercedes will also revive the sedan. Automobilwoche reports it might take a different shape, such as a stripped-down GLA. However, a hatchback would make the most sense, as the body style remains popular in Europe and Mercedes already offers numerous crossovers.

What do you think?

View

Comments

Motor1's Take: The decision to prolong the A-Class’ life cycle and move production makes sense. Mercedes’ entry-level vehicle may carry slim profit margins, but it still generates enough volume to justify the extended shelf life. It’s also likely cheaper to build the car in Hungary, where labor and operating costs are lower compared to Germany. Rivals Audi and BMW also operate factories in the Central European country.

In recent years, Mercedes has focused on bigger and more expensive models in a push upmarket to chase fatter profit margins. However, extending the A-Class’ life and developing a successor shows the company now wants to cater again to the mainstream crowd. It’s a double-edged sword: while the A-Class drives volume, some would argue it dilutes Mercedes’ standing as a luxury brand.

The Latest Compact Cars From Mercedes:

2026 Mercedes GLB Revealed: Seven Seats, Three Screens, Two Trunks

The 2026 Mercedes CLA Shooting Brake Is the Antidote to Luxury SUVs

Source: Automobilwoche

We want your opinion!

What would you like to see on Motor1.com?

Take our 3 minute survey.

- The Motor1.com Team

Share this Story

GO TO COMMENTS

(

)

Got a tip for us? Email: tips@motor1.com

View all comments ( )

Popular

Bugatti Restores One-Off Veyron With A Mirror-Like Aluminum Body

BMW Kept This Hatchback A Secret For Decades

Skoda Wants You To 3D Print Pieces Of Your Car At Home

The Gas BMW M3 Isn't Dead: Next-Gen Prototype Roars