Although some had their doubts, Mercedes-Benz has managed to defy its critics regarding its new for last year entry-level offering, the CLA. Many questioned whether a front-wheel-drive Mercedes sedan would find buyers, and if the brand's luxury status could be harmed as a result of selling a model with a starting price below $30k. But the CLA has been a huge success with dealers only complaining that they couldn't get enough units to satisfy demand. Most customers actually pay above $30k once they add on the options.

It was an impressive accomplishment, but the German automaker still had to do something about those rightful dealership complaints. And now Daimler-Benz CEO, Dieter Zetsche, has confirmed that CLA production is being increased. Not only that, he admitted that Mercedes made a major miscalculation in terms of supply and demand last year. "We could have sold twice as many vehicles (CLAs), easily, compared to our planning," he stated. Mercedes also has to contend with new players to the segment, specifically the hot-selling Audi A3. It too has had supply issues. But at least Mercedes has fully acknowledged the problem and is doing something about it. We have no doubt that Audi will follow suit.