DaimlerChrysler is considering replacing the A-and B-class lines with a single model and introducing a new smaller car.

According to a report in Wirtschaftswoche, DaimlerChrysler chairman Dieter Zetsche said the next model changeover due in 2011 will consist of just one version of the car.

The new car would essentially replace the B-class, while an all-new entry model would be a sport compact that would compete with small models offered by BMW and Audi.

A spokesperson denied any such speculation to dpa-AFX saying that both the A- and B-are very successful models.