Getting wind from the German financial newspaper Wirtschafts Woche, luxury carmaker Mercedes-Benz has reportedly scrapped plans for successor models to its A & B-Class, due for replacements in 2011. In an about turn, an all new sporty compact hatch has been approved for development by Daimler boss Dieter Zetsche in order to compete head on with the sportier Audi A3 and BMW 1-series. News gathered is that this hatch may even spawn a compact coupe to go head on with the recently unveiled BMW 1-series coupe.
Rumours that add fuel to fire are guessing that at best, there may just be a new B-Class hatch, but this will likely be rear-wheel drive, possibly using a shortened platform derived from the new W204 C-Class.
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