Mercedes May Consider Small Car for U.S. If Current Trends Continue

Washington DC December 22, 2006; The AIADA newsletter reported that if fuel prices stay high and U.S. demand swells for cars such as the Mercedes-Benz B-Class compact in Europe, Mercedes may consider a compact car for the U.S., Group Research Chief Thomas Weber said, reported Reuters.

"At present, the U.S. market is only conditionally ripe for such a car. But we think that there is a basic global trend toward downsizing – not just for motors but for vehicle size as well," Weber said this week.

"As a complement to the segments in which we are already active -- (Mercedes-Benz) S-Class, E-Class, C-Class and the SUVs – we absolutely believe that a car in the A/B Class – a C-segment compact – has chances in the U.S. as well... That means we need corresponding volume, among other things.

In the end I am convinced that there will be Chrysler vehicles in this segment and also Mercedes-brand vehicles."

On the prospects for increasing demand in the U.S. for clean burning diesel, Weber says that U.S. customers have responded "extremely positively" to the luxury group's Bluetec diesels. "Since we relaunched diesel in the E-Class in early 2004 we have sold more than 14,000 diesel vehicles in the U.S. No one could have imagined that only a short time ago."

He said DaimlerChrysler was in talks with other manufacturers about sharing BLUETEC diesel technology, which combines a urea-based additive to help cars cut nitrogen oxide emissions and meet clean air rules in all 50 U.S. states.