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Mercedes faces up to a small future

Written By Paul Lucas Published On: Nov 15 2009
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German company Daimler AG is contemplating launching a series of small Mercedes Benz cars in the USA in a bid to tap into growing interest for downsized models.Under a tentative plan, the manufacturer would import at least one of four next generation compact models that it will start selling in Europe in 2011. The plans were revealed by Daimler CEO Dieter Zetsche in an interview with The Wall Street Journal as he suggested the vehicles would go head to head with an expanding field of small cars from the likes of BMW, Volkswagen and Audi.The severe economic downturn has prompted even affluent customers to look towards smaller and more understated models with higher fuel efficiency. Sales of large sport utility vehicles such as the Chevrolet Suburban have plunged while sales of stylish compacts from the likes of Honda have grown.With a long term shift towards environmentally friendly vehicles beyond the recession, luxury car makers such as Daimler and BMW are determined not to be left on the losing end.According to Mr Zetsche, the future customer will continue to want to show some statement with fewer carbon dioxide (CO2) emissions and more modesty in appearance.As added motivation, the introduction of smaller cars would help Daimler meet new US fuel economy standards that are expected to be tightened in the coming years.However, compact premium cars have a mixed track record in the US – BMW’s small hatchback, the 318, wasn’t met with much enthusiasm state side, while sales of Daimler’s Smart car have also been slow.

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