In my oppinion, it was a mistake in the first place for Mercedes to enter the market with the A-class, here in Germany the rumors in the press are saying, Mercedes hasn´t earned a dime with the A and B class.
But the costumers actually like the concept event though all other companies offer about the same type of car, I mean with the high seating position, older costumers especially find that very appealing. What this has done, that loyal costumers of Mercedes because of the high seating chose an A or B-class instead of the regular cars like the C-class. I don´t think the A or B-class has attracted that many new customers to the brand, they just cannabilized their own cars.
And now Mercedes is taking the A-class to be a rival of the BMW 1 series, leaving pretty many of the owners of an A-class out in the rain, now they won´t find a car in the lineup of Mercedes with the high seating position, plus older people tend to look for a car that is smaller than their previous cars, a trend wich will continue because of high gas prices, but the A-class also offered good space in a relatively small package, that won´t be offered by a 1 series competitor.
Mercedes is still doing a whole lot wrong, I´m a bit worried about their future, it seems they really don´t know what to do with their costumors.