Mercedes-Benz USA to Discontinue Selling Seven Car Models
Giancarlo Perlas July 26, 2020
More than a week ago, it was confirmed that Mercedes-Benz USA will be axing the C-Cass and A-Class. A new report claims that a total of seven cars in the lineup of the three-pointed star marque in the United States will suffer that fate.
According to Automotive News, MBUSA CEO Nicholas Speeks spoke with their US dealerships in June through a webinar. The discussion centered on the discontinuation of seven models in the area. The source tried to get a comment from a Mercedes spokesman about the matter but no official statement has been made by the automaker as of yet.
Among the likely candidates on the chopping block, in addition to the C-Class and A-Class sedans, are the niche cars of Mercedes such as the coupe and convertible models of the C-Class, E-Class, and S-Class. The CLS Coupe and one GT model are under consideration too.
The article said that the dealers approved the decision of Mercedes to reduce its lineup because they saw the US portfolio of the brand as bloated when it already reached 15 models. With no sign of the pandemic slowing down as of the moment and customer demand getting on an all-time low, the German luxury carmaker has to find ways to streamline its production costs. Having to produce many body styles for a single name only adds to the company’s expenditures, so the situation definitely calls for such a move.
In turn, Mercedes will focus on its crossover and full-sized sport utility vehicle production and sales in the US. The company is looking to capitalize on the high demand for the SUV segment, which increased its sales by 73 percent in the past five years. Meanwhile, luxury car sales have dropped by 37 percent within the same timeframe.
