June 18^th, 2004

Mercedes gives itself another 'A'

Behind a more whimsical face, and egotistic persistence, a more serious vehicle

Despite an Internet leak, this is as much as we can show you of the 2005 A-Class (here in coupé form) while still respecting the embargo. Tune in on June 28th for an updated article with full photography

Launched in 1997 as a 1998 model, the current, outgoing A-Class resembled precious little of Mercedes' luxury cars' forms

"One must wonder... for how much longer can this line run?" we asked of the A-Class in February last year (article: 'Buying Bargain Basement Luxury').

Yet 10 days from now, ending its predecessor's eight-year model cycle, the 2005 Mercedes-Benz A-Class will enjoy its world premiere.

It will be accompanied by Christina Aguilera singing 'Hello' exclusively for Mercedes-Benz... and by the addition of official photos to this page.

Shortly thereafter, on September 10^th, Benz's baby will go on sale across Europe in five-door form, with three-door coupes following next January.

The new car has grown in all dimensions (10cm longer, for a total length of 3.87m and about 10% shorter than a BMW 1 series), while being lowered and fitted with a re-engineered rear suspension.

Surfacing, from panels to headlamps and other details, is a mix of defining swooshes and bulbous areas. Overhangs are typically short, and - most notably - the wrap-around glass at the rear is gone (no doubt a victim of a budget whose priorities have shifted to rectifying Mercedes' tumbling image).

One such priority is the interior, of substantially higher quality and surprisingly restrained in style, particularly in comparison to the whimsical interior of the outgoing model.

This is new territory for the A-Class; note just the fact that, as with other Mercedes models, there is actually a press embargo on its pictures. Mercedes spent a full year warming Europe up to the first-generation A-Class and yet, for the 2005 model year, it will treat the second-generation no differently to its other models.

Despite our observing of the temporary media embargo, the A-Class fascinates us now, almost seven years on, as much as it ever did. Never has one car brought out so many different faces in its manufacturer, from,

• egocentrism backed by technical superiority (link);
   

• to internal questions about strategy and quality (link),
   

• and even to a highly unlikely sense of humor (link).

It sounds like a great 3-pointed story, and indeed it is. While we wait for June 28^th, then, permit us to tell the second part with as many facts as are currently known.

Egocentrism backed by Technical Superiority
(and how W169 learns from the former, and meets the latter)

In Brussels, Belgium in 1997, Mercedes-Benz unveiled the smallest modern car ever to bear its name and its first ever front-wheel-drive layout. The idea behind the A-Class was to bring a strong brand image to a class which valued fuel economy and ease of parking above all else. Mercedes anticipated that the engineering excellence, quality, and prestige for which its brand was known would usher a new era into the 'city car' category in Europe.

While Mercedes sells substantially cheaper cars in Europe than it does in the U.S. (although the gap has grown smaller in recent years), the A-Class was yet another, lower rung. On the one hand, it looked as though Mercedes was expanding into unknown territory, chasing sales figures at the potential expense of its brand's prestige. Indeed, Kiley notes that arch rival BMW is "within striking distance of surpassing Mercedes in worldwide sales by mid-decade, especially if the Mercedes A-Class, which few people consider a true Mercedes, is taken out of the comparison."

Considering the risk, however, the A-Class had a remarkable level of public goodwill at its launch. Perhaps our cynicism evaporates in the face of a lower price of entry for that popular past-time of keeping up with the neighbor's driveway? Already rumored to be looking at expansion plans that would take it into Chrysler, Mitsubishi, and Smart, Mercedes was convinced that it could do it all: buy mainstream manufacturers, and offer its own mainstream vehicles under its own premium badge.

"Forget everything you have learned so far," the celebrated designer Bruno Sacco reportedly told his team.

Stuttgart's ego was, in the months leading up to the A-Class, fed by a press and public that was bemusedly egging the Swabians on.

Then, as now, the perception of Mercedes-Benz was somewhat distanced from reality.

David Kiley writes in his excellent new book, Driven, about manufacturers who have "developed vehicles that fit a business case or filled a market segment but that were not developed with a brand anchor.

"Only after the marketing and advertising staffs got the vehicle from the engineering and production department could they go to work making the latest vehicle fit the brand scheme in vogue that year...," Kiley notes (Driven, John Wiley & Sons, 2004).

Mercedes managed to avoid that perception for a short time. A-Class had the space of a C-Class in a much smaller package, with excellent entry/ exit to boot. Then, dramatically, the A-Class lost the packaging trick it had up its sleeve, the engineering triumph that had so effectively softened initial public opinion. Initially praised for its innovative packaging and risky positioning, the A-Class' rollover woes in an infamous Scandinavian magazine's elk avoidance test quickly - if perhaps too quickly - shed any thoughts that the baby Benz adhered to the 3-pointed star's core value of safety.

In many aspects, this was a pity. That passengers sat higher in the A-Class inherently helped the car in side impacts, and it went on to achieve a four-star NCAP rating. From 1999 onward, side airbags were standard.

Yet with the single most genial part of its packaging - its "sandwich" layout - shredded in the debacle, the A-Class had only a badge belied by a surprisingly low price tag to fall back on.

The badge still glistened but, suddenly, the car had lost its shine. Despite an ESP resolution to the rollover problem, its image never recovered; with low-rent plastics, a damaged reputation, and an unfamiliar style, A-Class appeared to be little more than a cartoon Benz. Mercedes found itself competing with mainstream labels all over Europe who had long mastered the art of selling to the budget buyer. Renault's '97 Mégane Scénic, in particular, taught the A-Class a serious lesson in both value and driving dynamics.

Now, for better or worse, Mercedes has chosen to persist with a car whose form resembles very little in its luxury car range, and one which many have suggested should never have been built. Competition in the segment is more intense than ever, with Peugeot's 307 and Seat's Altea having recently joined in to challenge Renault's second-generation Scénic for packaging efficiency in the smallest footprint (and yet tallest figure) possible.

At Mercedes, emphasis continues to be on packaging, but dig deeper and one notes better performance, increased resoluteness, and better attention to quality in an attempt to make the model catch up to the image of the 3-pointed star it wears.

The new, second-generation A-Class, internally dubbed W169, is based on the longer versions (V168) of the current A-Class. Body styles continue in 3-door and 5-door configurations.

Like the first-generation, the new A-Class' claim to fame is its "sandwich" floor design, which puts the fuel tank, running gear, and spare tire under the floor. This permits a great deal of space in the fewer-than-four-meters of length this car occupies; enough for around 415 liters of luggage without folding the seats (up from 390 liters). As before, the engines glide downward in a major frontal collision. They are mounted, sources suggest, at angles of up to 59 degrees behind the front axle, supporting the A-Class' corporate mantra of intelligent security.

A full seven (one more than the current generation) four-cylinder engines are available, three of them newly-developed CDI diesels. Mercedes claims that horsepower is up by as much as 38%, with torque increasing up to 46%. Fuel economy is said to be improved.

The three diesel engines span 82hp 1.6-liter, 109hp 1.8-liter, and 140hp 2.0-liter variants, with the four petrol engines starting at a 95hp 1.5-liter; moving along to a 116hp 1.7-liter; a 136hp 2.0-liter, and the top-end 193hp 2.0-liter turbo.

Expect gasoline direct-injection to be installed eventually, although - as we currently understand it - it is not figured for immediate launch. We know that direct-injection can coerce 107hp (a 12.6% increase) out of the 1.5-liter, which is fitted to the new, European Mitsubishi Colt.

Costing more than €22,000, the A200 turbo will be the performance leader, with a 7.9-second 0-62mph time and a top speed of 227 km/h.

This is the highest output engine ever officially placed in an A-Class; even in-house tuner AMG's efforts have resulted only in styling changes and a 2.1-liter, 140hp motor in the current, outgoing generation. There is no word yet on an AMG version of the new car, but expect greater involvement this time around, and the final product to follow late in the 2006 model year.

The fastest diesel, the A200 CDI, comes in at 9.5 seconds and 202 km/h respectively, with the 14.6 second, 227 km/h A160 CDI bringing up the rear.

All engines will offer a stepless CVT automatic transmission as an alternative to Benz's new, all-aluminum 6-speed manual gearbox and older 5-speed manual. Dubbed Autotronic, the CVT offers two programs - sport and comfort - and seven virtual stages when manually selected. Autotronic is said to be the most compact stepless automatic transmission in the world, measuring just 330mm in length.

In a further effort to make Mercedes and A-Class mix, the new car has the multi-link rear suspension now expected of this class.

Pricing starts at €17,632 for the gasoline-engined A150, which will not be released until later in the fall. The top-of-the-line A200 turbo will follow in June next year.

Production plans at Benz's Rastatt A-Class factory are for 250,000 per year, stretching to 300,000 by the end of 2005. That is approximately double the upgraded capacity of the M-Class plant in Alabama, and it highlights the company's higher expectations for the second generation. 152,000 A-Class models were sold in Europe in 2002.

Will we see the 2005 A-Class in the U.S.? While this has been a longstanding debate, we are quite convinced that the car will not be sold here under the A-Class badge. Automotive News carried several stories last year in which Mercedes' American officials and dealers derided the A-Class as ungainly and conservative.

On the other hand, the Paris Auto Salon this October will see the release of Mercedes' CST, which will be based on the A-Class but will feature soft-roader styling. Take a look at a European Citroën C3 XTR, Rover Streetwise, or VW Polo Dune, and you will have some idea of what to expect: body cladding, a raised ride height, and off-roader detailing.

The CST will be U.S-bound, and likely placed in competition with BMW's X3.

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Internal Questions about Strategy and Quality (and how W169 resolves them)

There is every sign that Mercedes was well aware of the overlap between the A-Class and the Smart Forfour, and so the A140 - the current loss-leader - will no longer be available. This, along with the power and dynamic improvements discussed, moves Benz's baby slightly more upmarket.

An all-wheel-drive version of the A-Class is rumored to still be on the cards, further differentiating Benz's own baby from its baby division, but it is unclear whether one will be built under the A-Class name. Several sources in Europe have suggested that an all-wheel-drive A-Class might be badged MLK.

Thanks in part to the elk debacle, A-Class was always somewhat mired in the more pragmatic difficulties Mercedes-Benz has faced over the past decade.

When the consumer electronics market began to take hold in the late '90s, car manufacturers jumped aboard, seeing the potential for behind-the-scenes parts sharing that would theoretically make their vehicles both more profitable and more competitive at lower levels of the market.

There is every sign, however, that Mercedes went too far.

Top Gear, June 2004, carries a stinging assessment of the difference between perception and reality when it comes to the Mercedes brand. AutoMarxx recently surveyed over 38,000 members of ADAC (the German motoring organization), asking them to rank brands by image.

Mercedes came out on top; "no other brand was even close," notes Top Gear.

Yet for ownership satisfaction, Mercedes finished near-bottom, better than only Land Rover.

"The appeal is clearly much deeper than quality and reliability. The whole world would drive Toyotas if it wasn't," notes Top Gear, adding that "design, performance, safety and residual values are important elements in the buying decision as well."

"A Renault just won't cut it down at the golf club when a Mercedes-Benz can be bought for similar money," Top Gear writes. Certainly, this was the very essence of the A-Class: a Mercedes-Benz for the price of a Renault.

The first-generation A-Class was to offer a budget Mercedes-Benz which retained the engineering values the brand holds so dear. Yet Mercedes has learned an important lesson; perception is as important as packaging and expensive wraparound rear windows.

Ditch the latter, add the former in an attempt to make good on the promise of trickle-down technology, and we have the second generation. For 2005, the COMAND system comes to the A-Class. Options are the usual technological fare that VW has made it mandatory for mainstreamers to carry: rain sensors, climate control; multi-function steering wheel, and bi-xenon headlamps.

Head of Smart and Mercedes-Benz cars Jürgen Hubbert has acknowledged Benz's quality woes several times, and has most recently said that his aim was to return to the top of the quality charts by 2006.

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A Thoroughly Unlikely Sense of Humor (and how W169 eschews it)

When the revised A-Class was released, Mercedes invited journalists to a special preview. After listening to both technical explanations and to defensive assertions (one executive confessed to CAR that he had personally rolled every competitor's vehicle on tape, in case others pointed fingers), they climbed into the test cars to be met by... stuffed elks.

Let it not be said that the Germans have no sense of humor.

The German press jumped on it, labeling the car Elchi ('little elk.') Correspondent Ralph Mietzner even picked up a few select pieces for our On the Prowl... section on October 2^nd, 2003, as Elchi celebrated its one-millionth copy sold.

Inside, too, Mercedes appeared to have developed a sense of whimsy. The A-Class was all swirls and swooshes, with a horizontal speedometer and control layouts that curved at their edges, gravitating away from the massive pull of the image of gravitas which Mercedes had crafted over the years.

That whimsy - characterful exterior strokes aside - has largely disappeared, to be supplanted by visual functionality.

Inside the second generation, A-Class' horizontal speedometer and oval air vents have been replaced by a more serious set of four conventional, round dials and resolutely square outlets, reminiscent of the '84 190E (the first car to start the 'baby Benz' debate). Faux wood and aluminum is kept to a minimum, and trim between the beige and black vinyl choices are relatively sober; no strange patterns and light-hearted color choices figure this time around.

In fact, Mercedes is strongly against the accessorizing that has taken precedent with youth-oriented competitor vehicles, Hubbert telling Automotive News last year that Mercedes' strong brand image was an asset (as opposed to, perhaps, the blank, modifiable canvases others seem wont to provide).

Care has been taken to reach a consistency in the plastics used in different areas of the dashboard. Mercedes' traditional blank buttons still remind the driver of their individual vehicle's price tag, but the overall effect remains appealing in a businesslike sort of way.

Whimsy is absent in the body styles, too. The coupe gains little in style for the two doors it gives up. Although rumors abound that a convertible A-Class might be expected, they have so far proven unfounded. That said, a full, retractable sunroof is available.

On the whole, the current A-Class sullied itself rather than drag either the seemingly impenetrable Mercedes image, or that of tuner AMG (which effectively placed its name on a barely-breathed-on version), downward. In a recovery plan which Jurgen Hubbert believes should restore Mercedes' reliability standing back in line with its image by 2006, however, the new car will have to do better.

Should there even be a new A-Class? Mercedes' inherent egotism, splendid in its idea if flawed in execution, has made dropping the A-Class unthinkable.

The new car should win more friends, however, with a more careful playbook that attempts to apply the Mercedes-Benz strategy to the segment, leaving buyers more satisfied but yet wanting more of the same when it comes time to move up.

Somewhere in the song Aguilera will perform at the W169 A-Class' launch are, apparently, the words, "follow your own star." Judging by preliminary information on its latest vehicle, the Swabians appear to have invested in a better telescope. Time - and a road test or two - will tell how many light years away they are from the stratosphere to which Mercedes must return.