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Before you say "but that's what the CLA essentially is," the report mentions it will slot above it.

As if there weren’t enough sedans in Mercedes’ ever-growing portfolio, the company with the three-pointed star logo is allegedly cooking up a new one. Autocar has it on good authority the new entry is going to serve as a direct rival for the Audi A3 Sedan and the new China-only BMW 1 Series Sedan. It will share the updated MFA underpinnings with the next-gen A-Class and will be positioned above the CLA, meaning that it will be bigger and more expensive than the “four-door coupe,” but at the same time it will not step on the C-Class’ toes. That being said, it is believed passenger space and trunk capacity will almost match the C.

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Mercedes A-Class Sedan reportedly due by late 2018

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