Mercedes will drop its only hatchback to produce more SUVs

Mercedes recently unveiled the third-generation CLA, offering a choice of electric vehicles and hybrid powertrains. However, there's bad news for the A-Class: the brand's chief technical officer, Markus Schafer, has confirmed that the sleek compact sedan will not be followed by a new A-Class.
Here's What We Know
Rumours about the end of the A-Class' lifecycle after the end of the current generation have been circulating since 2022, and now we have official confirmation. During the launch of the new CLA, Markus Schaefer revealed that Mercedes will not be developing a successor to its only hatchback.
He explained that Mercedes needs models that will be in demand around the world, including China and the US. The hatchback, he said, is the favourite body type in Europe. However, developing and producing a new hatchback would require a lot of resources, so the company had to make "difficult choices" and cut its compact car family from seven to four models.
In addition to the new CLA in sedan and shooting brake bodies, Mercedes' compact line-up will now include new generations of the GLA and GLB, as well as the smaller G-Class, known as the "Baby G-Class".

Mercedes-Benz A-Class (2019). Photo: Mercedes-Benz
Unfortunately, this also means that some models, including the A-Class and B-Class, won't get a new generation. In addition, the all-electric EQA and EQB models are expected to be integrated into the new GLA and GLB ranges, dropping the EQ name.
Last year, it was reported that the current A-Class will last until 2026, after which it will be discontinued. Four generations of entry-level Mercedes were introduced in 1997, 2004, 2012 and 2018 respectively. The first two competitively combined very compact dimensions and minivan proportions, while the third and fourth generation models were given the more conventional proportions of a hatchback.
The A-Class was withdrawn from sale in the U.S. and Canada at the end of 2022, but remains on sale in other markets, including Europe.
Source: Carscoops