Mercedes has confirmed that the next generations A-Class and B-Class will feature a new design and will adopt conventional engines: a new four-cylinder petrol and diesel engines that will make the car cheaper to build.
The future models will compete with models like Audi A3 and BMW 1-series and will go on sale at around £16,500 in the UK.
The company is also working on a new MPV, set to replace today’s B-class, that is expected to be of a similar size to the Volkswagen Touran and offer the choice between five and seven seats. Also planned is a new entry level off-roader based on the MPV, providing a rival for the upcoming Audi Q3 and BMW X1.
"Mercedes-Benz is going to offer a wider range of cars with the high levels of comfort, safety and quality that are characteristic for the brand - particularly in the fuel-efficient, compact-car segment," said Mercedes chairman Dieter Zetsche.