Mercedes-Benz will not extend its model range beyond the new B and R class model families, said CEO Eckhard Cordes.
"The expansion has gone far enough," said Cordes just before he launched the German luxury brand's new B class.
Cordes said Mercedes is relying on the B class to help increase the brand's market share.
He believes that most of the world's major auto markets will remain flat during 2005.
"We won't be getting any tailwind from the markets this year. The B class must win us market share," said Cordes.
The new M class, which had its European debut in Geneva, is a replacement model, "so we can't count on it for such a big sales increase," said Cordes.
The B class is based on an extended platform of the second-generation A class, launched last year.
The R class, an SUV/wagon crossover based on the M class platform, will be launched at the New York auto show March 25.
The R class also must boost Mercedes' sales performance, said Cordes. Both models will form a new range of vehicles for Mercedes called Sports Tourers.
Mercedes is using the new B class as a test bed for its development of fuel-cell powertrains.
The automaker unveiled a new fuel-cell vehicle, dubbed the B-class F cell at Geneva.
It said the range of the vehicle has been increased to about 400km via reductions in fuel consumption and the ability to store more hydrogen fuel on board.
The powertrain's electric motor develops 100 kilowatts.