Premium carmakers are increasingly sceptical of investing in models that sell in the sub-€30,000 to €50k-plus segment. But why?
Due to disappointing margins and the prevailing microchip shortage, pricier products typically have a much greater impact on the bottom line. That's why all key players started shifting priorities, away from A1/A3, 1/2series and A/B-class.
The key to improved profitability is a diligent lifecycle management, which nurses older runout models and ranges lacking contemporary content while simultaneously installing the new parallel electric world order.
In the latter context, Audi can, in the entry segment, rely on MEB – courtesy of mother Volkswagen. BMW continues to hang on to FAAR, the modular multi-traction FWD equivalent to the CLAR RWD set-up. Meanwhile, Mercedes is readying the totally revamped MMA (Mercedes Modular Architecture), which is merely a stop-gap solution on the long way from electric first to electric only.
Further streamlining moves potentially implemented across all size and price classes include; advanced battery-only applications like SSP (VW group), The New Class (BMW group) and MB.EA (Mercedes).
In the course of this grand reorganisation scheme, Audi decided not to electrify the A1 and Q2. In contrast, BMW intends to replace at least the 1series hatchback and the 2series Gran Coupé with EVs derived from the New Class DNA. The future of the Active Tourer MkII, which has yet to launch in most markets, and the 2series coupé is still undecided.
Mercedes went down a different avenue with MMA, which can accommodate both small combustion engines and a wide choice of electric drivetrain configurations.
MMA is the platform of choice for the new compact cars launched in the 2024-2027 timeframe. No longer part of the party are the un-sexy B-class, the slow-selling A-class saloon and the CLA shooting brake – which is only popular in Europe.
The most recent victim of the relentless purge brigade is the polarising SUS (sport utility saloon) design exercise, which tried to craft the All-Terrain off-road pack to a humble three-box bodystyle – think of it as a dramatically downscaled iteration of the Maybach Ultimate Luxury concept (2019).
Based on the long-wheelbase platform of the Chinese A-class, the crossover's critics described it as vaguely reminiscent of the 2003 Subaru Outback sedan, which was allegedly axed because its packaging almost matched the proposed EQE SUS.
Another China-only model is the future long-wheelbase Mercedes CLA four-door coupé, which may benefit from the pending demise of the CLS. Also taking advantage of the LWB hardware is the next GLB, which moves up-market and will for the first time be offered as high-performance hardcore AMG product, sources say.
While the CLA shooting brake is officially dead, there are moves afoot to pitch a notably sportier low-drag CLX aeroback, inspired by the record-breaking EQXX prototype. Apparently, the small one-time investment and the expected high yield would make this still to be confirmed range-topper also a desirable brand-shaper.
Except that there is one more surprise debutant waiting in the wings – the GLG. A declared favourite of CEO Ola Kallenius, the GLG reimagines the brick-shaped G-class on a smaller, lighter and, in no way over-engineered, platform. Since the planned fully-electric baby G, which was last year still destined to become the clean-air sister model of the ancient G-class featuring an all-new platform, is no longer an active programme, the GLG is now en route to become the marque's first emission-free near-hardcore SUV.
The 800 volt MMA layout can package transversely mounted four-cylinder engines, e-motors (front and rear) and a sizeable 250-litre underfloor battery tray.
Although the combustion era is by no means over yet at Mercedes, low drag has shot up the priority list for all MMA derivatives, irrespective of the means of propellant. This strategy almost certainly spells the end for the classic tall upright grille and the boxy rear, which are bound to give way to a lower front, strongly tapered plan view and more streamlined tail section.
Even GLB and GLG must presumably scale back their typical in-your-face SUV proportions and vehicle height will generally come down. Active air flow management, in combination with pre-conditioned battery and inverter cooling or heating, is a new engineering factor to be considered.
The declared goal of these measures is to bring down the average real-life consumption from currently just under 20 to between 12 and 13kWh/100km, while the maximum driving range between plug-in stops is at the same time set to grow from 514 to about 805 miles.
But in this context, we're no longer talking MMA. To meet such aspiring targets – not to mention the postulated extended 60-145kWh energy span and the wider 150-700kW output bracket – takes an even more advanced formula known as EA.MB and EA.AMG, which is still almost four years away.
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