Let me ask you, would you support M-B releasing a 4X4 Pickup Truck?

How about M-B Golf Carts?
Or how about M-B Minivans (I'm not talking about the R-Class, I mean a real and true Minivan).



Those aren't Minivans and Pickups, those are Commercial vehicles, which are fine to me as they've always been a part of M-B, and don't invade on their consumer cars/fleet (kind of stand on their own, out of the radar, and fund the company nicely to boot). I'm talking about a Ford F-150 Competitor.
And the Unimog is awesome.![]()
Those aren't Minivans and Pickups, those are Commercial vehicles, which are fine to me as they've always been a part of M-B, and don't invade on their consumer cars/fleet (kind of stand on their own, out of the radar, and fund the company nicely to boot). I'm talking about a Ford F-150 Competitor.
And the Unimog is awesome.![]()
So when they bring the A-Class/B-Class to the US, the S-Class will suddenly become less desirable? Or your E-Class will instantly become a lesser car?
MB Minivan? Well, I don't know if it counts (since it was a "semi" commercial vehicle) but they did produce the Vaneo for a while: Mercedes Vaneo
The M-B brand and stigma as a whole will move downmarket. They'll eventually be a brand with lots of quality European entry level cars, and SUV's/Utilities, priced at a premium over their Japanese/American competitors, and then they'll have their "Luxury line", which will be the S/E/SL/CLS/Etc. I don't think they'll be a "Luxury Automaker" in the absolute sense, once people get accustomed to the dropping price and age demographic.
You have to remember that in the U.S, M-B isn't famous and desired as first and foremost quality cars that are both respected/held high and used as Commercial, practicality, Taxi, etc. vehicles, they're famous first and foremost for their prestige and desirability.
I think you're under-estimating the strength of the Mercedes-Benz brand. I don't think the lower-end models have had much effect on the brand image of MB in Europe or anywhere else. It's not like most people in Germany think of A-Class or R-Class when they hear the name 'Mercedes-Benz'.
It's also interesting that you use the word 'stigma' as it isn't usually considered to have a positive meaning. If anything MB has tried to shake off its "old man's car" image with new models like the C-Class Coupe that are sportier and appeal to younger demographics.
It's a hard task to sell a hatchback (or small cars in general for that matter) in the US but I think there is still a market for the A-Class variants MB has planned to introduce. If they have the same qualities that MB's larger models are known for i.e. quality, style and comfort with slightly more sportiness, I'm sure they will sell.
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