Michael Simari|Car and Driver
- With 25 percent tariffs on cars imported into the United States right around the corner, automakers are preparing ways to respond.
- A report from Bloomberg claims that Mercedes-Benz may be considering axing its entry-level models.
- Mercedes officially refutes this report, saying the company is focused on continuing its pattern of sales growth.
With import tariffs right around the corner, automakers are looking to limit their exposure. According to a recent report from Bloomberg, Mercedes-Benz may respond by no longer importing its least expensive models, vehicles such as the GLA-class and CLA-class, or perhaps even the C-class.
For a luxury marque, entry-level vehicles are less about volume profits than they are about introducing a buyer to the brand. Hopefully, someone who picks a GLA over a BMW or Audi alternative will grow accustomed to Mercedes’s infotainment and dealer service and consider moving to a more expensive offering when their lease is up. Every company thinks a lot about brand loyalty, and Mercedes is no exception.
Unfortunately, while something like the G-wagen is in such huge demand from deep-pocketed clientele that a pricing spike likely won’t affect sales much, a 25 percent bump to a $42K GLA or $46K CLA might represent a budget buster. The subcompact luxury sedan is built in Kecskemét, Hungary, and the subcompact luxury SUV is built in Rastatt, Germany, so they would be subject to greater tariffs than Mercedes models assembled at the company’s Alabama plant.
Mercedes-Benz
Reached for comment, a Mercedes-Benz spokesperson said the reports are “without merit,” and that the brand is focused on sales growth. Last year, the company managed to increase sales volume by nearly 10 percent.
Still, with some confusion continuing to swirl around how the import tariffs will actually roll out, executives throughout the industry will be considering options that might have seemed unlikely just months ago. Luxury brands such as Aston Martin have indicated that prices will rise in the immediate future, and Ferrari has already responded with increased prices on some of its models.
It’s possible that pattern will be repeated with some of Mercedes-Benz’s product line, especially AMG and Maybach vehicles. What will happen with the entry-level models remains to be seen. Uncertainty is not in short supply on the day the impending tariffs are set to go into effect.
Both are still available via the $1800 Design package.
Even if you add the optional package it is still $3000 cheaper than before.
The new price means it sneaks under the $89,900 asking price for the BMW 330i but still substantially more than the circa-$82,000 Audi A4 45 TFSI, although the latter will be replaced soon.
The move to cut the C200 price came after the brand raised prices by up to $6000 across the board at the start of this year – the C200 price jumped by $1200.
2025 Mercedes-Benz C200.
The C200 is powered by a 1.5-litre four-cylinder turbocharged petrol engine paired with some mild hybrid tech, with the set-up making 150kW and 300Nm. This is paired to a nine-speed automatic that drives the rear wheels.
Mercedes-Benz used to be the top-selling luxury car brand in Australia but lost its crown recently to BMW and the gap has only widened further.
The C-Class used to be the top-selling luxury sedan, but the BMW 3 Series and the BMW i4 electric car both outsold the former premium favourite in 2024.
Last year sales of the C-Class dropped by 26 per cent, and that trend has continued at the start of this year.
