Mercedes-Benz A-Class and B-Class reportedly may withdraw

In May, Mercedes-Benz announced a new strategy to focus on vehicles with lower sales volume but higher profit margins.

As part of this strategy, Mercedes will reduce its compact car lineup. Germany's Handelsblatt (subscription required), citing several sources, reported Tuesday that the three include the A-Class sedan and hatchback, and the B-Class minivan.

This would leave a CLA-class coupe-like sedan, a CLA-class shooting brake fastback wagon, and GLA-class and GLB-class crossovers.

The A-Class, now in its fourth generation, is one of the best-selling cars in the Mercedes lineup, reaching nearly 120,000 units in Europe alone by 2021. However, its margins will be too thin to overcome the cost pressures facing the automaker, such as the switch to electric powertrains and rising energy and raw material prices.

Mercedes sells only the A-Class sedan in the U.S., a model that will be discontinued after 2022 when the latest version is introduced for other regions.

Mercedes' next-generation compact cars are confirmed to use a new modular platform known as MMA (Mercedes Modular Architecture), although the MMA platform is being developed for compact cars and small EVs, internal combustion engines in hybrid configuration are also expected to continue to be supported. The MMA will be the last platform for Mercedes, as all future platforms will be dedicated to EVs.