With the likes of BMW's 1-series and Audi's A3 dominating the premium small car segment, Mercedes-Benz has finally decided to get serious and create a real contender for the segment. Expected to launch by 2011, Mercedes has given the go ahead on a project to completely revamp its A and B-Class cars.

According to AutoCar, Mercedes-Benz head Dr. Dieter Zetsche has given the green light to the plans that will see the A-Class turned into a 1-series fighter and the B-Class transformed into a serious competitor for the upcoming X1 small SUV.
The new A-Class — which is expected to be called the CLA — could spawn three different body types, but will initially be launched as a coupe. Mercedes decided on a two-door coupe instead of a three-door hatchback — like the CLC – to give the car a more upscale feel. In the long run, Mercedes expect the CLA — which will be priced at about £19,000 — to eventually replace the CLC.
Look for the CLA and new B-Class to be powered by a range of gasoline and diesel four-cylinders, with horsepower ranging from 120 horsepower to 200.
Mercedes hopes to boost its premium small car sales to over 280,000 by early next decade, a goal the new A and B-Class cars should help the German automaker attain.

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