The Mercedes-Benz X-class pickup is to be dropped as the brand's parent company, Daimler, seeks to reduce costs amid profit warnings, according to sources at the automaker.
Mercedes launched the model in 2017, aiming to give its light commercial vehicles division a more diversified sales footprint by entering the booming global segment of midsize pickups.
But only 16,700 units of the X class were sold last year in Europe, Australia and South Africa. The U.S., where demand is mainly for full-size pickups, was ruled out as a market.
Right from the start, the X class was unable to live up to expectations. Its price, starting at 37,294 euros in Germany, was too high. Competition is fierce in its segment, in which VW Amarok and Ford Ranger also compete.
Several recalls also hit sales, among other things because of a footwell light that can come loose and jam under the brake pedal.
As part of Daimler's industrial cooperation with Renault-Nissan, the X class uses the same platform as the Nissan Navara and Renault Alaskan with a conventional ladder-type frame. It is built at Nissan's factory in Barcelona, Spain.
In February, former Daimler CEO Dieter Zetsche abandoned plans to build the pickup for South American markets at a Renault-Nissan plant in Argentina.
Earlier this month, Daimler cut its profit forecast for the fourth time in 13 months, as it set aside more money to cover a regulatory crackdown on diesel emissions and vehicle recalls related to Takata airbags.