Mercedes plans to cut some entry-level models        

Manufacturer's focus will be on higher-priced, higher-margin vehicles

Ola Källenius, chief executive at Mercedes-Benz.

After years in a grudge match against rival BMW to become the world’s biggest luxury automaker, Mercedes-Benz is calling it quits.

The Stuttgart-based manufacturer will cut some entry-level vehicles from its product line and shave 25% off of its share of entry-level cars in the segment by 2026, chief executive Ola Källenius said in a far-reaching interview.