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Mercedes-Benz has announced plans to extend it compact car line-up from five to eight models by the end of 2020, in a move aimed at providing the German manufacturer with greater representation in important volume segments.

This new range, which high ranking Mercedes-Benz sources confirm will include a new Audi A3 saloon-rivalling four-door saloon and a BMW X1-challenging SUV with both five and seven-seat layouts, is to be based on a new modular platform set to be first used on the upcoming fourth-generation A-Class.

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