The global trend toward smaller cars — driven by fuel prices and fears of even higher prices — could lead DaimlerChrysler to launch a Mercedes-Benz compact car in the United States, according to group research chief Thomas Weber.

Mercedes-Benz continues to avoid selling smaller in the U.S., because of fears that it might dilute the brand’s high-end image. And weak dollar also makes it harder to make a business case for European-made exports. While fuel costs have subsided, the fear of higher costs in the near future have kept demand for smaller, more fuel efficient cars up. And Mercedes could decide to bring a car like the Mercedes-Benz B-Class compact to the States.

“At present, the U.S. market is only conditionally ripe for such a car. But we think that there is a basic global trend toward downsizing — not just for motors but for vehicle size as well,” said Weber. Adding, “As a complement to the segments in which we are already active — (Mercedes-Benz) S-Class, E-Class, C-Class and the SUVs — we absolutely believe that a car in the A/B Class — a C-segment compact — has chances in the U.S. as well.”

Given the low margins and newly competitive nature of the U.S. compact segment, next-generations of current Mercedes cars would need to be “absolutely competitive”. “In the end I am convinced that there will be Chrysler vehicles in this segment and also Mercedes-brand vehicles” said Weber.

## Source: Reuters ##

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