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The automotive industry is bracing for impact as a new tariff of approximately 25% is set to take effect in the US on April 2nd. This has prompted major car manufacturers to scramble for solutions, with some even considering discontinuing their entry-level models in the American market, Mercedes-Benz included.
According to Bloomberg, Mercedes-Benz USA is contemplating phasing out its affordable models, starting with the GLA. This crossover, produced in the Rastatt plant in Germany, is then exported to various markets, including the US, China, and Australia.
In the US, the GLA currently starts at a competitive price of 43,000 USD. However, with the impending tariff, that price is estimated to surge to 53,750 USD, significantly diminishing its appeal in the crossover segment.
This potential price hike has put the GLA’s future in jeopardy, especially considering its modest sales performance in the US, totaling 19,079 units in 2024.
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The Mercedes-Benz GLA and GLB showcase their sleek designs. Image: Mercedes-Benz. |
While Mercedes-Benz has not disclosed any additional models that may face discontinuation in the US, speculation surrounds the CLA sedan and the GLB crossover. The CLA, freshly introduced to the American market with hybrid and electric variants, could be at risk due to its production location.
Similarly, the GLB, manufactured in the Mercedes-Mexico plant, falls under the scope of the new tariff as it was a target of the Donald Trump administration’s trade policies.
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The elegant CLA sedan. Image: Carscoops. |
Despite the rumors, Mercedes-Benz reassured Reuters that they have no plans to discontinue any models in the US this year. A spokesperson from the three-pointed star brand affirmed their commitment to “continuously seeking opportunities to grow sales of [their] attractive model range.”
However, Mercedes-Benz has a history of sudden discontinuations, such as with the A-Class sedan in 2022, despite initially denying such intentions.
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