According to Inside Line Mercedes is working on a new junior-size SUV based on Mercedes' new front-wheel-drive platform. It will be smaller than the upcoming GLK and will compete with the BMW 1-Series.

In the same article Inside Line reports that Mercedes has rejected studying proposed ventures with both Fiat and BMW and will create the future A-Class and B-Class by its own.

"In certain model lines we have certain themes and principles closely networked. We would have been forced to throw them overboard had we shared a platform with another carmaker," said Dieter Zetsche.

Both models will be built on a new platform below the C-Class with front-wheel drive and high-mounted transverse-sited engines. The A-Class will be offered as a three-doors only and a convertible version might follow in the future. The next generation B-Class will grow in size and will compete with the new Volkswagen Touran.