New Details Indicate That Smaller Mercedes Would Compete with Mini

The story broke that MercedesMercedes-BenzGermany, 1924 > present197 models
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is considering a compact car below the A-ClassMercedes-Benz A-Class Gen.3 [W 176]Germany, 2012 > present33 versions
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in March, and more details about the smaller Mercedes are leaking out. 

The model has been codenamed the X-Class and will borrow components, including engines, from its partner RenaultRenaultFrance, 1898 > present189 models
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to keep base prices below €20,000. The car would be built to compete with the next generation MiniMINI (BMW)Germany, 2000 > present15 models
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and Audi A1Audi A1Germany, 2010 > present167 versions
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and be on sale in 2017 or 2018. Mercedes will likely work closely with Renault on the platform to make sure it fits their needs, and it will likely be front-wheel drive. 

Like Mercedes will do with the A-Class and upcoming GLA crossover, the X-Class will likely spawn a crossover variant quickly. 

Mercedes believes that it will not dilute its brand be offering smaller cars because the cost of high tech technology like touch screens and electronic assistance is falling rapidly. It can put the same technologies in its small cars as in its larger cars for roughly the same price. 

Source: Automotive News Europe