Huge car brand discontinues TWO sister models after fall in sales – but will reveal new motor in days
A HUGE car manufacturer has announced it will stop production of two models to focus on more profitable vehicles.
Mercedes-Benz said it is turning its focus towards cars that will bring in more money for the brand.
It is axing the Citan compact commercial van and its T-Class passenger sibling.
These are based on the Renault Kangoo and are built at Renault’s plant in Maubeuge, northern France.
Production of the models will halt in the middle of next year.
However this won’t effect any other vehicles being produced at the plant.
Mercedes will instead concentrate on its commercial line up on the midsize and large segments.
This means models including the Vito, V-Class and Sprinter which are more profitable, AutoMotive News reports.
But the company has hinted at a new motor, saying it plans to present a version of the Vision V van at the Shanghai auto show in just a few days.
It comes as Mercedes and Renault reduce their industrial partnership.
Mercedes and Renault will have just one remaining joint project in Aguascalientes, Mexico that includes Nissan.
But Nissan and Renault are looking to knock off their ties as Donald Trump increases tariffs on vehicles built in Mexico.
This follows General Motors bringing in two new sedan designs for next year.
It it thought to be discontinuing two beloved models and replacing them with electric vehicle versions.
GM confirmed the CT5 and CT4 sedans would make a comeback next year but there will reportedly be a major change.
The major car company allegedly will not offer a new generation of these vehicles with an internal combustion engine, according to GMAuthority.
This comes after reports that Cadillac is expecting EVs to make up around 35 per cent of its sales in 2025, according to CNBC.
The target would be a huge jump from the 18 per cent of EV sales in 2024.
Why are so many car dealerships closing down?
By Summer Raemason
According to Business Rescue Expert there are multiple reasons why car dealerships are folding across the UK.
The first major factor is rising online car sales which are beating in-person sales at dealerships.
With an extensive range of comparison and second-hand sites to chose from, may car buyers don’t even step foot into a dealership anymore.
Secondly, the actual cost to physically run the sites has soared.
Rent, wages and energy bills have all been increasing for roughly the past five years, putting many out of pocket.
Car manufacturing across the globe was also hit by a semiconductor chip shortage in 2022 which made it difficult to produce new motors.
The high demand with limited supply created a backlog, which although has eased, is still having an impact on the industry.
A third reason for recent closures is the shift to electric cars.
They are becoming more popular, given the Government initiative to be Net Zero in 2050.
The industry is also affected when companies merge or are bought by rivals.
This may lead to some independent names falling victim to the ongoing spate of closures.
Audi is also set to axe the incredibly popular A1 and Q2 models next year. Both cars will be replaced by EVs.
According to Autocar, they’ve reached the end of the road with Audi ready to launch a new entry-level electric car as an indirect replacement.
Just yesterday, Mercedes-Benz Retail Group’s annual accounts revealed the group “disposed of its remaining leasehold premises” after years of struggling financially.
Companies House documents revealed directors should “not expect any further future trading activity” with the company.
This follows years of financial blows, including a £35 million loss in 2019 and a £20.9 million loss in 2020.
Confirming the latest news, director Wolfgang Pipperger said: “During the period, the company sold its remaining dealerships at which point the company ceased to trade.
“After the reporting date, the company disposed of its remaining leasehold premises, recovered its remaining trade and other receivables and settled any outstanding trade and other payables with a view to move the company into a dormant status.
“The directors do not expect any further future trading activity within the company.”
This follows the closure of a Mercedes-Benz dealership in Bradford late last year.
The dealership, which was around for 70 years, announced it would cease trading on October 31.