Mercedes goes boxy with GLB crossover concept

SHANGHAI — Mercedes-Benz is carving out yet another niche in the burgeoning crossover market with a new small people mover — this one styled like a traditional SUV.

The automaker introduced the GLB concept — a new MFA2 platform companion to the GLA — on Monday on the eve of the Shanghai auto show.

The GLB, referred to as the "Baby G-Wagen," has  2829-mm (111-inch) wheelbase and fits up to seven people.

It will compete with SUVs such as the BMW X1 and Audi Q3.

The GLB is also equipped with Mercedes' new multimedia system — Mercedes-Benz User Experience.

The concept is powered by a four-cylinder engine that delivers 224 hp. The GLB also features all-wheel drive and an eight-speed dual-clutch transmission.

Pricing and launch dates for the GLB have not been disclosed.

Mercedes said the GLB’s third row of seats offers "comfortable seating for two medium-sized occupants" despite the vehicle’s relatively moderate size. The company is also showing the sporty Mercedes-AMG A 35 sedan, the updated GLE SUV and the electric EQC model in Shanghai.

China has been one of the few bright spots for the Mercedes-maker Daimler so far this year. Deliveries in its largest sales region defied an overall market slump to edge up 2.6 percent through March, while sales in U.S. and Europe fell. Global trade woes and slowing growth are undermining demand for new cars at a time of record spending on electric cars and new digital services.

The GLB slots between the entry-level GLA and the GLC, and adds another crossover in the Mercedes showroom aimed at entry-level luxury customers.

"We asked ourselves whether there is still space between the GLA and GLC," sales chief Britta Seeger said in a statement. "The concept GLB is the answer to this question."

The GLA is compromised on interior space and utility, limiting its appeal, since one of the primary reasons people prefer crossovers is their practicality and functionality, said Ed Kim, analyst with AutoPacific.

The GLB will offer a slightly larger and more functional package, a function of its boxy dimensions, Kim said.

"The GLB class will likely outperform the GLA class in the U.S. market thanks to its greater utility, and American customers tend to like boxier and more traditional upright SUV proportions like the GLB class will have," Kim said.

Being on the large side for the segment — with three-row seating — the GLB, however, risks cannibalizing some GLC sales.

Mercedes "will have to carefully position the GLB class to minimize negative impact on GLC class sales," Kim said.

The GLB concept is powered by a M260 four-cylinder gasoline engine. The cylinder bore is widened at the lower end of the cylinder liners to minimize friction and thereby lower fuel consumption. The pistons feature cooling ducts for more efficient combustion. The aluminum four-valve cylinder head features a variable-valve timing system that can increase fuel efficiency or boost the engine's performance.

The GLB concept has the muscular exterior proportions and luxurious interior similar to the discontinued Mercedes GLK.

The concept harks back to the unveiling of the GLA unveiled in Shanghai six years ago, which heralded the brand’s successful shakeup of its compact-car offerings. The automaker sold more than 609,000 vehicles in this segment last year, about a quarter of global deliveries.

Reuters and Bloomberg contributed to this report