Mercedes planning 1-series rival in 2011

It's no secret that the Mercedes-Benz A-class hasn't been a resounding success and that the automaker is looking to revamp its entry-level line-up to better compete with rivals. According to Autocar, M-B boss Dieter "Dr. Z" Zetsche has green-lighted a new model that's taking aim at the BMW 1-series and Audi A3, and will accompany the rest of the revised A-class models when it debuts in 2011.

The new model will replace the aging, if just recently facelifted, CLC and will initially come to market sporting a coupe body style instead of a three-door hatch. Mercedes plans to expand the rest of the A-classes to include at least three different body styles of each model, coinciding with the launch of the new B-class, which will be designed to compete with the upcoming BMW X1.

Power will supposedly come from a combination of direct-injection gasoline and diesel powerplants, with output ranging from 120 to 200 hp. Pricing should be competitive with BMW's 1-series models, with the new A-class falling right around the £19,000 mark.