While U.S. markets lost the Mercedes A-Class in 2022, the German automaker recently announced it wouldn’t renew the A-Class lineup—full stop—after its lifecycle expires in 2026. The move is likely to refocus the brand’s portfolio toward more popular vehicles like SUVs and crossovers.

To many, the A-Class was just an average five-door hatchback made slightly nicer by the Germans. For car enthusiasts, though, the compact car rapidly evolved into one of the best hot hatchbacks on the market: the A45 AMG.

The CLA-Class will now be the entry point into the Mercedes brand. Instead of mourning the loss of the A-Class, let’s look at the clever engineering that brought the CLA-class into the modern era.

What Is the Latest Mercedez-Benz CLA-Class?

In 2024, Mercedes forecasted EVs would make up 50 percent of its total shipments by 2030. Things have since changed dramatically, as the German automaker is experiencing a much weaker and slower response to EVs from customers. Along with ditching its “EQ” line of electric vehicles, the brand is sticking to electrifying existing models in its portfolio, starting with the CLA-Class.

I’m pleased to report that the new third-generation CLA-Class—likely launching for the 2026 model year—will retain an internal combustion variant. In fact, expect the new lineup to arrive with three powertrain configurations: a 1.5-liter mild hybrid, single-motor electric, and dual-motor electric.


Hybrid and Electric Powertrains

mercedes benz präsentiert den neuen cla während eines pulsierenden events in der villa miani am 13. märz 2025 in rom, italien. mercedes benz launches the all new cla during a pulsating event at villa miani on march 13th, 2025 in rome, italy.
Mercedes-Benz AG Communications & Marketing

Mercedes-Benz ditched the “electric or bust” approach that many automakers were opting for previously. In covering all the bases, the new third-generation CLA-class will be available with battery electric and hybrid powertrains. It might sound fairly easy to tick that box, but the engineering muscle behind the new CLA would likely tell you otherwise.

For context, Mercedes designed a whole new platform from the ground up with the flexibility to accommodate EV and hybrid powertrains. The Mercedes-Benz Modular Architecture (MMA) platform features a “skateboard” layout with affordances for a long and thin battery under the passenger compartment; the full electric version will be available with a single-motor rear-wheel drive configuration (producing 268 horsepower) or a dual-motor all-wheel drive variant with an additional motor at the front adding another 107 hp.

Mercedes’ claim that the CLA is its cleverest car yet rings true for a lot more than just the electric variant. The MMA architecture will also be able to accept an internal-combustion engine under the hood; the gas-burning spec will feature a 1.5-liter turbocharged engine up front, paired to a 48-volt hybrid system.

And you might recognize that Mercedes built a whole new engine from the ground up just for this car.

Dreaming up a powerplant that runs a 12:1 compression ratio and can accept 26 pounds of boost, you’d probably think the new CLA could be a bit of a firebreather. Unfortunately, thanks to lambda 1 regulations requiring a constant 1:1 air-fuel ratio, the four-cylinder can only cough up 188 horsepower and 221 pound-feet of torque.

Thankfully, the mild hybrid system can recuperate some of these losses—27 horsepower to be exact. That might not sound like a lot, but the return from many of these hybrid systems is worth more than the sum of their parts; the Mercedes unit provides assistance through all eight gears to give the engine some extra pep. The electric motor is mounted within the eight-speed dual-clutch transmission to seamlessly step in when the internal combustion engine isn’t at its best. For context, these mild hybrid systems fill in the gaps between gear changes and are able to muscle through low-speed acceleration.

What’s Next?

While the third-generation CLA can accommodate piston power up front, Mercedes-Benz mentioned an “electric-first” approach with its new MMA platform, which will likely need to last well into 2030 and beyond. Customers can expect Mercedes’ latest electric vehicle to start at $55,000 and max out around $65,000. It hasn’t been confirmed if the CLA EV will qualify for the $7,500 federal tax credit, but all signs point to yes.

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Matt Crisara
Service Editor

Matt Crisara is a native Austinite who has an unbridled passion for cars and motorsports, both foreign and domestic. He was previously a contributing writer for Motor1 following internships at Circuit Of The Americas F1 Track and Speed City, an Austin radio broadcaster focused on the world of motor racing. He earned a bachelor’s degree from the University of Arizona School of Journalism, where he raced mountain bikes with the University Club Team. When he isn’t working, he enjoys sim-racing, FPV drones, and the great outdoors.