MERCEDES-BENZ may supplement its A-class line-up with a lengthened version that offers greater interior space.
The A-XL variant is believed to be just over 200mm longer than the existing model, liberating additional rear-seat legroom and luggage space.
Although the long wheelbase A-class is yet to be confirmed for production, Mercedes-Benz Australia spokesman Jeff Fisher said the vehicle would be evaluated for the local market if it was given the green light.
"If the stretched A-class is added to the product line-up and available at a competitive price, we will certainly look at it," he said.
The newcomer is likely to make its European debut next May, which suggests it may be here in late 2001.
It could be a useful addition to the A-class range, with pricing expected to be kept under $45,000.
In the shorter term, Mercedes-Benz's mid-size E-class range will be supplemented next month by a new entry level model positioned below the V6-powered E240.
The new E200 Kompressor will use the same 2.0-litre supercharged engine recently introduced in the SLK roadster.
This unit generates outputs of 120kW at 5300rpm and 230Nm from 2500rpm to 4800rpm, more or less on par with the E240's outputs of 125kW and 225Nm.
The E200 Kompressor may be priced around $83,000, compared with $89,480 for the E240 Classic. This would enable it to compete with the $81,765 BMW 523i.
The 2.0-litre supercharged unit will also be introduced in the CLK range, replacing the normally-aspirated engine in the current CLK200.
Further down the track, Mercedes-Benz will introduce the all-new C-class in November, followed by the barnstorming ML55 four-wheel drive in December.
Meanwhile, rumours that a lack of profitability had cast a shadow on the long-term future of the A-class appear to be unfounded.
US publication Automotive News has quoted Mercedes-Benz and Smart passenger car division board member Joachim Schmidt as saying an A-class successor would be developed and produced, even though the current model faces profitability problems.
Previously, some sources had suggested a four-door, four-seat version of the pint-sized Smart could help fill the void if the future A-class was cancelled.
But Mr Schmidt was quoted as saying: "We will develop the next generation A-class into a whole family of cars, like we did with the C-class".
"I can't say what these versions will be, and I can't promise a cabrio or a 4x4," he said.
"But we will definitely offer more than just one model with a short and a long wheelbase." Mr Schmidt said the concept of the car would remain unchanged, using a sandwich-floor construction that will also provide the space for a fuel-cell power unit.