It may require an alphabetic revision, but Mercedes-Benz is reportedly working up a new model line that would slot somewhere between the maker’s current bottom-end A-Class and the Smart car produced by parent Daimler AG.
Designed to take on competitors like the Audi A1 and a front-drive BMW model now under development, Mercedes is expected to turn to its French alliance partner Renault to help develop the small car. The X-Class would be targeted at the growing market for high-mileage microcars and be offered in a mix of body styles.
Production of the new line is expected to begin around 2018, according to Germany’s AutoBild magazine, with the X-Class expected to come in at a base price of around €20,000, or $26,000 at current exchange rates. That would create a serious challenge for the maker, something Mercedes apparently will address by turning to one of its partners for assistance.