BERLIN — The commitment to advancing combustion engine technology at Mercedes-Benz remains steadfast, with a significant increase in investment announced by CEO Ola Kaellenius. This year, the luxury automaker is dedicating 14 billion euros ($15 billion) to further enhance the performance and efficiency of its combustion engine technology in passenger cars, as reported by Wirtschaftswoche.
In addition to investing in production facilities and research and development, Mercedes-Benz is focused on optimizing the drivetrain of its hybrid vehicles to ensure their relevance well into the next decade. Kaellenius highlighted that substantial resources were allocated to the upcoming facelift of the combustion engine version of the iconic S-Class, scheduled for release in mid-2026. Emphasizing the commitment to technological excellence, Kaellenius affirmed that Mercedes-Benz engines will maintain industry-leading standards to sustain the combustion engine business beyond 2027/28.
Despite the growing popularity of electric vehicles, Mercedes-Benz is prioritizing the continued improvement of combustion engine models to meet current market demands. While the company previously aimed for all-electric sales by 2030, recent projections suggest that only 50% of sales will be electrified vehicles, including hybrids, by the end of the decade. This strategic shift underscores the importance of maintaining a balanced product portfolio that caters to diverse consumer preferences and regulatory environments within the automotive industry.
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