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Mercedes-Benz Could Reportedly Axe Entry-Level Models in the U.S.

With 25 percent tariffs on cars imported into the United States right around the corner, automakers are preparing ways to respond. A claims that may be considering axing its entry-level models. Mercedes officially refutes this report, saying the company is focused on continuing its pattern of sales growth. With import tariffs right around the corner, automakers are looking to limit their exposure. According to a recent report from Bloomberg, Mercedes-Benz may respond by no longer importing its least expensive models, vehicles such as the GLA-class or perhaps even the C-class. For a luxury marque, entry-level vehicles are less about volume profits than they are about introducing a buyer to the brand. Hopefully, someone who picks a GLA over a BMW or Audi alternative will grow accustomed to Mercedes's infotainment and dealer service and consider moving to a more expensive offering when their lease is up. Every company thinks a lot about brand loyalty, and Mercedes is no exception. Unfortunately, while something like the G-wagen is in such huge demand from deep-pocketed clientele that a pricing spike likely won't affect sales much, a 25 percent bump to a $42K GLA might represent a budget buster. The GLA is built in Rastatt, Germany, so it would be subject to greater tariffs than Mercedes models assembled at the company's Alabama plant. Reached for comment, a Mercedes-Benz spokesperson said the reports are 'without merit,' and that the brand is focused on sales growth. Last year, the company managed to increase sales volume by nearly 10 percent. Still, with some confusion continuing to swirl around how the import tariffs will actually roll out, executives throughout the industry will be considering options that might have seemed unlikely just months ago. Luxury brands such as Aston Martin have indicated that prices will rise in the immediate future, and Ferrari has already responded with increased prices on some of its models. It's possible that pattern will be repeated with some of Mercedes-Benz's product line, especially AMG and Maybach vehicles. What will happen with the entry-level models remains to be seen. Uncertainty is not in short supply on the day the impending tariffs are set to go into effect. You Might Also Like Car and Driver's 10 Best Cars through the Decades How to Buy or Lease a New Car Lightning Lap Legends: Chevrolet Camaro vs. Ford Mustang!