Daimler Planning New Line of Mini-Sized Cars?

Daimler AG's Mercedes-Benz unit is developing at least two "X-Class" small vehicles that would compete with the Audi A1 and BMW Mini, according to Germany's Auto Bild.

The enthusiast magazine, which identifies no sources, says the front-drive models will be priced below $26,000 and fit into Daimler's lineup between the Smart city car and Mercedes A-Class supermini hatch.

The first of the X-Class models, likely to appear in about five years, will be a crossover that shares its platform with the Renault Captur small crossover, Auto Bild says.

That model will be followed by a tiny MPV derived from Renault's next-generation Clio subcompact hatch, according to the report. It says Daimler hopes to achieve annual sales of 100,000-150,000 for each model.