Press Release

Mercedes-Benz Announces New A-Class Compact Cars

12/12/96

Mercedes-Benz A-Class Redefines the Compact Car; Innovative Design
Brings Large-Car Safety and Room to a Small Vehicle

STUTTGART, Germany, Dec. 10 -- One of the most intriguing
cars of the decade -- the Mercedes-Benz A-Class -- will make its
European debut in early 1997 and will go on sale there later in the
year. The new A-Class will establish an entirely new market segment
which, in large part, addresses the high fuel costs and crowded
conditions of many European and Asian cities, with strong market
potential for developing countries as well. While there are no
immediate plans to offer the A-Class in the U.S.  market, it could
eventually appear there as the Mercedes-Benz zero-emissions electric
vehicle after the year 2000.

Large-Car Safety in a Short Vehicle

Although the new A-Class is less than 12 feet long (141.8 inches), it
offers all the typical Mercedes core values -- especially safety,
comfort and reliability. First and foremost, the A-Class fulfills the
same rigorous safety requirements that apply to all Mercedes-Benz
passenger cars, and is basically equivalent to the E-Class in safety
integrity. The unique double-floor "sandwich" body structure of the
A-Class helps provide large-car safety for a relatively short vehicle
by allowing the engine, transmission, axles and fuel tank to be
positioned underneath the passenger cell. As a result, in a frontal
collision, the drivetrain slides under the passenger compartment
instead of directly into it, providing a short but effective crumple
zone to absorb crash energy.

The double-floor design also allows a higher occupant seating position
than other small cars for better visibility and greater protection in
accidents, particularly in side-impact collisions. Also contributing
to large-car crash worthiness are sturdy longitudinal frame members
which extend the entire length of the A-Class (instead of conventional
staggered frame rails which run inside the wheel wells, along the door
sills, and connect at the front and rear firewalls).

The height of the A-Class frame is compatible with larger cars in the
event of a collision (other small cars don't provide the same
protection since larger vehicles can override their structure and
negate their safety systems). Standard safety equipment will include
full front airbags, belt tensioners and belt force limiters.  Front
door-mounted airbags will be optional.

New Drivetrain Architecture

Much as the A-Class body structure is a new, purpose-built design
rather than just a downsized conventional vehicle, its drivetrain also
features new architecture designed for the double-floor layout,
specifically an unusual transverse engine-transmission unit which is
tilted forward at a 60-degree angle. Four new powerplants will be
offered in the European market: 80-horsepower 1.4-liter and 100hp
1.6-liter four-cylinder gasoline engines as well as 60 and 90-hp
1.7-liter turbodiesel versions. A 1.9-liter gasoline will be added
later to the powertrain strategy.

The diesels will feature the first-ever use of common-rail fuel
injection -- an electronic diesel injection which provides clean,
efficient power. With the help of its "intelligent light-weight
design" (which makes specific use of the advantages of various
light-weight materials), 60 miles per gallon is attainable with an
A-Class with some light-footed driving.

The A-Class features the industry's most compact transmissions -- a
five-speed manual is standard, while an electronically-controlled
five-speed automatic will be optional. An automatic clutch option for
the manual transmission will also be available.

Big on the Inside, Small Outside

Never before has a car this small on the outside been this large on
the inside. While its exterior size suggests a sub-compact, the
A-Class will offer its occupants the roominess and comfort of a
midsize car, thanks to its fresh-approach design. In addition, the
A-Class will provide the versatility of a small van: the cabin floor
is completely flat, and all passenger seats are foldable (rear
seatbacks are split 1/3-2/3) and removable, which makes for a useful
cargo area that even holds two full-sized bikes.

Mercedes-Benz Re-Invents the Car

While there are no immediate plans to bring the car to the
U.S. market, the A-Class nonetheless makes a strong statement about
Mercedes-Benz leadership in design and technology. In many ways, their
engineers have re-invented the car -- their "clean sheet of paper"
approach has resulted in a vehicle with a previously unheard of
combination of impressive safety, roomy interior and compact overall
size. While other small cars are essentially scaled down from larger
vehicle concepts, only the German automaker has taken such an
innovative and fresh approach in creating its first small car.

Unconstrained by convention, the A-Class design literally defines an
entirely new vehicle segment which is expected to draw buyers from
compact and sub-compact cars as well as mini-van and compact van
categories. In the course of creating a new class of car, the A-Class
will represent "the Mercedes-Benz" of this new market segment.