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Mercedes said to be working on sub-A-Class model that will be called the Mercedes A-City

Mercedes-Benz has the brand new second-generation CLA on display at the 2019 Consumer Electronics Show in Las Vegas these days, showing stylish design and technologies from the A-Class. The latter is currently the brand’s smallest model and is not even offered as a hatchback in the United States. That’s not about to change anytime soon, but the German automaker might be having plans to go even below the A-Class in some markets.

According to German title, Autobild, the German car-maker’s new supermini will rival cars like the Audi A1 and MINI hatch if greenlit for production, with the Mercedes A-City set to be priced from just €20,000 ($A30,000) when it arrives in 2022.

The suggestion the small supermini is being developed, in both three- and five-door form, is linked to the German car-maker’s parent, Daimler, considering killing the Smart brand, that has struggled to make a profit since the marque was founded back in 1994.

As well as the A-City, Autobild suggests that the supermini could spin-off a small delivery van and an on-demand shared vehicle. Logic tells us, if it ever gets the green light, the new small Benz will be based on the next-generation of the A-Class which should be put on the drawing board in about two years from now. It should ride on a new modular platform which will allow the company’s engineers to scale it down a bit for the needs of the new Baby Benz.

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