The former head of MBUSA, Paul Halata, did not like the FWD and hatchback Mercedes idea, plus the exchange rate was punishing.
Many Mercedes C-Class cars sold in the USA are assembled in Brazil in order to save $$$ on labour costs, but the B-Class is only made in Rastatt, Germany. So chances are it would have been as expensive as the Brazilian-built C-Class, factoring in the profit margin, so maybe I can even see where he was coming from at the time.
Comparing the two?
The C-Class looks sportier, arguably is better-looking and handles better.
But the C-Class is a lousy family car, because the rear head- and legroom is poor, and the trunk is small. I know this, having driven across Canada in 2004 with a C 230 K with five aboard plus luggage.
The B-Class is super-practical; the rear legroom is better than the E-Class and only eclipsed by the LWB S-Class; the rear headroom is superb, the trunk is huge, the fuel economy potential is outstanding (I just got close to 40 US MPG on a suburban drive today), the car is very safe, it has a huge sunroof and seems to be well-made.
I don't expect that the current generation car (destined to remain in production for another 3+ years) will be sold in the US, but the next version might. I say that because they will be setting up a new factory in Hungary to make the next generation car for some price-sensitive export markets (like the USA and maybe even Canada).
I think we may look back on this time with the current B class and muse about how legendary and great this car was because there is a good chance we will not get a car like this again that:
1. Made in Germany
2. Has this great space utilization design
3. Quality and cruises like a big Benz because it is a real Benz not shared with other makers for the price
Personally, I have always found that no matter what, almost to a fault that German cars made in Germany are always the best made and most trouble-free and the same seems to be true for Japanese cars made in the home country too.
Even American cars seems best when made in the good 'ol USA style factories that have been around such one's in Detroit and even here in Canada. They may not be as efficient etc., but they are reliable well made cars. Example, any GM car with the 3800 engine.
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