Mr. Glitterati

2009 Mercedes-Benz B200 CDI

STUTTGART, Germany — Mercedes-Benz may launch its next-generation A- and B-Class compacts in the U.S. in 2012 as part of a broader strategy to bolster its small-car portfolio in North America.

The plan has been under consideration for more than a year, and this week, Daimler CEO Dieter Zetsche told The Wall Street Journal in an interview that the company plans to sell one or more of its new compacts in the U.S. The new A- and B-Class lineup will be introduced in Europe in late 2011.

The smaller Mercedes models would compete against such European rivals as the Audi A3 and the BMW 1 Series.

The automaker also will decide in the next two months whether to shift some production of the C-Class sedan to its U.S. plant in Vance, Alabama, according to Automotive News. The industry journal is also reporting that a redesigned C-Class is due in 2013.

Mercedes is reshaping its small-car plans for North America even as U.S. sales of the Smart Fortwo subcompact have fallen well below expectations.

Smart sales totaled only 661 units in October, down more than 70 percent from October 2008 and the lowest for any month since the car made its U.S. debut. For the first time, Smart is offering cut-rate financing on the car in the hope of boosting demand.