AUTO MODIFIED 2011

Not everyone thinks that it is a good idea for Mercedes to sell a budget model in the U.S., particularly one sporting the Mercedes marque. Yet, Mercedes has been building smaller models for years and in Europe the brand is known for producing luxury cars as well as vehicles for the masses. Indeed, Mercedes' biggest adversary, BMW, also produces a line of small cars and is planning on bringing these vehicles to the U.S. shortly. Thus, like it or not, Mercedes must respond and the B-Class will be the answer.

Consumer perception. A very strong psychological aspect must be overcome first and that is consumer perception. While the Mercedes name adorns a variety of vehicle levels in Europe the name is perceived as "pure luxury" in the U.S. Mercedes remembers Cadillac's attempt in the past to produce a budget Caddy [remember the Cimarron?] and how those attempts failed miserably.