While Mercedes-Benz and Audi are racing into the compact-luxury segment, their usual rival is taking a cautious approach. In several interviews, BMW executives have told us that there’s no guarantee the company will bring the next-generation 1-series to the U.S., and that the decision will hinge largely on how the new CLA and A3 perform in the market. A front-wheel-drive 1-series already is in advanced stages of engineering and was previewed as a concept car last fall.
“Where we have the 1-series close to the 3-series in terms of the price ladder, what Mercedes and Audi are doing is giving more focus in the below-$30,000 price range. We’re going to watch that and in the future—well, the battleground has now moved to this $30,000 price point. We’re working hard to take advantage of that market,” Paul Ferraiolo, BMW’s head of product planning and strategy for North America, said. Other executives were more direct, saying the decision is up in the air.
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