Why Is Mercedes Extending A-Class Production Until 2028?
If you’ve been following Mercedes-Benz’s strategy lately, you might have noticed a surprising twist: the A-Class hatchback and sedan, originally set to bow out in 2026, are getting a two-year reprieve. What’s behind this change of heart? It all comes down to demand—specifically, the kind that refuses to die down in Europe. Despite a shifting automotive landscape, the A-Class remains a crowd-pleaser for drivers who want a premium badge without the premium price tag.
According to Dataforce, Mercedes sold 27,772 A-Class units in Europe between January and May this year. Sure, that’s a 15 percent dip from last year, but it’s still a hefty number for a compact luxury car. Compare that to the B-Class minivan, which only managed 5,997 units in the same period, and the writing’s on the wall: hatchbacks and sedans still have a place in the European heart, while minivans are fading fast.
What Does This Mean for the Future of Mercedes’ Compact Lineup?
Here’s where things get interesting. Mercedes isn’t developing a brand-new generation of the A-Class. Instead, the current fourth-generation model (W177), which launched in 2018 and got a refresh in 2022, will keep rolling off the line—potentially with another facelift to keep it sharp against rivals like the BMW 1-Series and Audi A3. If production lasts through 2028, the A-Class will hit a rare 10-year milestone in a segment where most models get replaced every six or seven years.
But don’t expect the A-Class to stick around forever. Mercedes is trimming its compact lineup from seven models to four. The B-Class is still on track to end in 2026, and the A-Class extension is being described by Mercedes’ head of production, Jorg Burzer, as a “final run.” So, while the A-Class gets a victory lap, the real story is about what’s coming next.
Why Is Production Moving from Germany to Hungary?
For the last two years of its life, the A-Class will move production from Rastatt, Germany, to Kecskemet, Hungary. This isn’t just a logistical shuffle—it’s a strategic move to free up space at the German plant for Mercedes’ next wave of compact cars built on the Modular Mercedes Architecture (MMA). Think of it as clearing the stage for a new act.
This shift is also a nod to how automakers are rethinking their manufacturing footprints in response to changing market demands and the push toward electrification. By consolidating A-Class production in Hungary, Mercedes can ramp up its new MMA-based models in Germany without missing a beat.
What’s Next for Entry-Level Mercedes Buyers?
With the A-Class on borrowed time, the new CLA is stepping up as the gateway to the Mercedes brand. The CLA, already on sale as an electric sedan, is built on the MMA platform and has been so popular that Mercedes had to add a third shift at its assembly plant just to keep up. Gasoline and Shooting Brake versions are on the way, giving buyers more options than ever.
But the changes don’t stop there. Redesigned versions of the GLA and GLB SUVs are in the pipeline, both set to ride on the MMA platform. And then there’s the much-anticipated “baby G-Class”—a compact SUV that will buck the MMA trend to preserve its off-road chops, staying true to the rugged spirit of the full-size G-Wagen. It’s a smart play for Mercedes, which knows that not every customer wants to give up adventure for efficiency.
How Does This Reflect Broader Trends in the Auto Industry?
The A-Class extension is a classic case of automakers listening to their customers and adapting on the fly. European drivers, especially younger professionals and urbanites, still crave compact luxury cars that are practical, stylish, and relatively affordable. Mercedes’ decision to keep the A-Class alive—while simultaneously investing in new electric and hybrid models—shows that the brand isn’t putting all its eggs in one basket.
It’s also a reminder that even as the industry races toward electrification, there’s still room for traditional models that hit the sweet spot between price, performance, and prestige. According to a 2024 report from the European Automobile Manufacturers Association (ACEA), compact cars remain one of the largest segments in Europe, accounting for nearly 30 percent of new car sales. That’s a big pie, and Mercedes clearly wants to keep its slice.
What Should Buyers and Fans Expect Moving Forward?
If you’re eyeing an A-Class, you’ve got a bit more time—but don’t expect any radical changes. The model will likely see another update to stay competitive, but Mercedes’ focus is shifting to the CLA and its MMA-based siblings. For fans of the B-Class or those hoping for a new generation of the A-Class, it’s probably time to look elsewhere.
The big takeaway? Mercedes’ compact strategy isn’t about perfection—it’s about smarter adjustments. Start with one change this week, and you’ll likely spot the difference by month’s end. Whether you’re shopping for a new car or just watching the industry evolve, it’s clear that flexibility and listening to the market are what keep brands like Mercedes ahead of the curve.