Mercedes-Benz has decided that it will reduce its focus on smaller and cheaper models like the A-Class and B-Class in the future. The company will not prioritise allotment of resources for the development of these cars.
The move comes as the company is looking to cut spending on research and development and reduce the size of its model portfolio, in an attempt to reduce its break-even point. The company does not plan to focus on volumes, but is aiming to increase its profits.
While Mercedes-Benz admits that the A-Class and B-Class had helped rejuvenate the brand it claims that it does not want to become a competitor of the volume makers.
Mercedes’ profits have been cut down by billions of Euros due to high fixed costs and costs incurred to deal with allegations surrounding the carbon emissions of diesel cars.
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