Bloomberg: Mercedes may drop budget models in the US due to new duties
On 2 April, the US will impose a 25% duty on imported cars. According to Bloomberg, Mercedes is considering withdrawing some of its most affordable models from the U.S. market, as they will become "uneconomical" because of the duties.
Here's What We Know
A final decision has not yet been made, but it is reported that the GLA crossover may be the first candidate. This model is manufactured in Germany's Rastatt and costs from $43,000 in the US, but with the additional duty, the price could rise to $53,750. It is worth noting that Mercedes has already published a teaser of the next generation of the crossover, and the current model is not a bestseller - in 2024, Americans bought only 19,079 units.
What other budget models may disappear from the American market is still unknown. Against this background, it is interesting whether the new CLA, presented earlier this month, will appear in the US. In Europe, the sedan will be offered with hybrid and electric powertrains, the latter developing up to 349 hp and providing a range of up to 792 kilometres on the WLTP cycle.
The GLB crossover could also be under threat, although it is manufactured in Mexico, which could make a difference depending on exactly how duties are imposed. However, like the GLA, the current model is in need of an update, so prematurely ending sales in the U.S. wouldn't be the worst-case scenario.
A Mercedes spokesperson denied the information in an email to Reuters, calling Bloomberg's publication "baseless" and emphasising that "Mercedes-Benz continues to strive to increase sales of its extremely attractive vehicles".
While the future remains uncertain, this wouldn't be the first time Mercedes has dropped a budget model in America. 2022 was the last year for the A-Class sedan, which occupied the number one spot in the lineup but was not in significant demand.
