Mercedes to Develop New Small Luxury Vehicles to Compete with BMW’s Mini image

Daimler plans to introduce a new lineup of small luxury models at its Mercedes brand to rival BMW’s Mini.

For the new Mercedes vehicles Daimler will use technology based on the compact A-Class, and therefore position the new models above the Smart city-car, according to the Focus magazine. The results of this strategic plan will be seen in 2015 when the automaker will introduce a SUV, which will be unveiled this month at the Shanghai auto show. The model will be smaller than the new GLA compact crossover.

In 2016 Mercedes will introduce a three-door model to rival BMW’s Mini. The automaker said that the prices for all model in this new lineup will vary between 17,000 euro ($22,300) and 20,000 euro.

Earlier this month the AutoBild magazine reported that the Renault-Nissan alliance will help Mercedes launch a new subcompact model range, known as X-class models, priced under 20,0000, which will rival the Audi A1 and the BMW Mini. 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.

In the following five years Mercedes-Benz plans to create a completely new vehicle lineup and not just bring some modifications to the existing Renault-Nissan vehicles.