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Mercedes-Benz expects the GLA to sell even better than the CLA

2227 Views 5 Replies 5 Participants Last post by  AMGz
The CLA has been a boon for Mercedes-Benz, and the three-point-star brand believes that its upcoming GLA crossover will be an even bigger success. Mercedes-Benz USA CEO Steve Cannon warned that there may be shortages of the GLA because of such high demand.

The GLA hasn't been priced yet, but it is going to be priced below the GLK, which is priced at $38,405. Personally I am guessing that the GLA will be starting somewhere around $32,000, just above the starting price of the CLA, $30,825.

Cannon expects the conquest rate of the GLA to be even higher than the 60 percent conquest rate of the GLK.

So basically, everything points towards the GLA being a huge success.
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I found an article with more details.

DETROIT -- Mercedes-Benz expects the GLA crossover to be an even bigger seller than its CLA sibling when it goes on sale this fall. That means dealers probably can count on shortages of that vehicle, too, said Steve Cannon, CEO of Mercedes-Benz USA.

The GLA shares a platform with the front-wheel-drive CLA that went on sale in September and has sold faster than Mercedes expected.

"Inventory is tight," Cannon said.

Pricing of the GLA has not been announced, but it will be positioned below the GLK crossover that starts at $38,405, including shipping.

The CLA starts at $30,825 with shipping. The GLA is expected to be priced higher, but still several thousand dollars less than the GLK.

The GLA will be launched with all-wheel drive and later offered with fwd. The high-performance GLA45 AMG debuted last week at the Detroit auto show.

With growing demand for premium crossovers, Cannon said the GLA could be even hotter than the CLA.

"Dealers feel there is a lot more potential in that car," he said. "It could be hotter -- the feedback is phenomenal."

The GLK had a conquest rate of more than 60 percent when it was launched in 2009, and Cannon said he expects the GLA's percentage to be higher.

Meanwhile, Daimler AG CEO Dieter Zetsche said Mercedes is looking for ways to boost production for all its new fwd compact cars, including the A- and B-class hatchbacks sold in Europe.

The automaker will likely add a third shift at the plant in Hungary that makes the CLA, but Zetsche admitted not much can be done to increase production of the current-generation compacts.

"Scarcity is not the worst thing for a product," he said. "You do not want to choke your pipeline."

The B class will be sold in the United States only as a battery electric car when it debuts this summer. Cannon said he does not expect high volumes, but he would not give sales targets.
It is difficult to find info on national segment sales but here is a Canadian article I found in regards to the year 2012 sales that you can compare the crossover/suv segment with the compact sedan segment.

Hard to say if the compact suv/crossover/w.e GLA is segment is larger than the CLA segment (I assume compact?)
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How I see it people are still making the transition from larger SUV's to more compact one's or even entry-level SUV's. Eventually we should see an upwards spike.
I am surprised to see the percentage change in market share for Compact SUVS to be so much lower now than it was in 2010-2011. Why all the sudden are people not switching to Compact SUVs now?

Perhaps the introduction of the GLA will be the catalyst for growth in the segment. I'm sure there are plenty of people waiting in the wings for the GLA to be on sale.
The GLA and any other vehicle in it's segment should be what will spike SUV sales, being very affordable it's going to be hard for people to pass up this opportunity especially when it does everything a lot of people need it to do.
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