With the subcompact A-Class going on sale for the first time in North America early next year, many assumed the current CLA would be discontinued. Turns out this won't be the case, as the automaker confirmed to CNET that the A-Class will be sold alongside the current CLA in showrooms until the new next-generation model arrives.

Hopefully, this means the CLA will be heavily discounted as it will look outdated alongside the A-Class sedan when it goes on sale. The A-Class will be sold in front-wheel-drive A220 and all-wheel-drive A220 4Matic guises and will "establish a new gateway for the Mercedes-Benz brand," according to a spokesperson.

To help distinguish the two models, Mercedes says the A-Class and CLA will be comparable to the larger E-Class and CLS-Class. In other words, the CLA will be more stylish and high-end than the A-Class, despite the two models having similar powertrains. Consequently, this means the new CLA will be more expensive than its predecessor after being positioned as Mercedes' sub-$30,000 entry-level sedan.

US pricing for the A-Class hasn't been announced yet, but it's expected to start at under $35,000. As a result, the new CLA is likely to command around $40,000 to avoid cannibalizing sales of the A-Class. And that's before you start trawling through the options list, which could bump the price up to $50,000.

Little is currently known about the new CLA, but previous spy shots have shown it will essentially look like a shrunken CLS. Expect it to debut sometime next year with the same 2.0-liter turbocharged inline-4 engine as the A-Class under the hood that produces 221 hp.