Mercedes and Renault-Nissan Work on X-Class Range image

Renault-Nissan will help Mercedes-Benz launch a new subcompact car range, according to AutoBild magazine.

The new subcompact car range, known as X-class models, will have a price under 20,000 euro and will compete with the Audi A1 and BMW’s Mini brand, according to the German magazine. The models will be placed between the Mercedes A- and B-class compacts and the Smart brand. Daimler declined to comment on this report, calling it speculation.

The magazine said that the first model will be a SUV-styled crossover, which will compete with the upcoming Audi Q2, and will be based on Renault’s Captur subcompact crossover. The model could reach showrooms in 2018. The following model is expected to be a larger subcompact minivan, which could be considered a smaller version for the Mercedes B class. The vehicle will be based on the next-gen Renault Clio subcompact hatchback.

In the following five years Mercedes-Benz plans to create a completely new vehicle and not just bring some modifications to the existing Renault-Nissan vehicles. The German automaker currently sells the Citan car-derived van, a vehicle based on Renault’s Kangoo. Both models will be fitted with the three- and four-cylinder gasoline and diesel powertrains.