The Mercedes-Benz A-Class will exit the United States market after the 2022 model year. The news was first reported on Thursday by Automotive News (subscription required), and confirmed to Motor Authority by Mercedes.

"While the A-Class was extremely well received by our customers since its introduction in 2019, this decision is consistent with our ongoing effort to streamline our product offering strategy," a Mercedes spokesperson said in a statement to Motor Authority. "The GLA SUV will take over the A-Class’ position as the entry point into the Mercedes-Benz USA product range."

Citing a Mercedes dealership memo, Automotive News points to "waning consumer demand and shifting corporate priorities" as reasons for the compact sedan's withdrawal from the U.S. It's worth noting that sales in the fourth quarter of 2021 were down 65.9% year over year.

2022 Mercedes-Benz A-Class

2022 Mercedes-Benz A-Class

The A-Class has been sold in various forms in other markets since the late 1990s, but didn't make it to the U.S. until the 2019 model year. It served as the vanguard for a new generation of Mercedes compacts, and also launched the Mercedes-Benz User Experience (MBUX) infotainment system that has since spread to most of the automaker's other models.

But like most sedans, the A-Class has had to compete with increasingly popular SUVs. The GLA-Class that will now serve as Mercedes' entry-level model is also essentially an A-Class hatchback (like what Mercedes sells in Europe) with a raised ride height and added body cladding.

In addition, Mercedes still offers the CLA-Class four-door coupe in the U.S. That model is expected to stick around, for a little while at least, so shoppers who want a compact Mercedes with a trunk still have one option. The A-Class will also continue in other markets, with a refresh expected for the 2023 model year.