Mercedes-Benz is doubling down on their investment in combustion engine technology, according to the company’s CEO, Ola Kaellenius. In an interview with Wirtschaftswoche, Kaellenius revealed that the premium carmaker plans to invest 14 billion euros ($15 billion) this year alone on its passenger cars. This significant investment demonstrates Mercedes-Benz’s commitment to improving and optimizing their combustion engine models.
One of the key areas of focus for Mercedes-Benz is research and development. The company is dedicating resources to reworking the drive train of their hybrid cars, ensuring that they will remain relevant and technologically advanced well into the next decade. This investment is a strong indicator that Mercedes-Benz is not ready to abandon combustion engines anytime soon.
Kaellenius also mentioned that Mercedes-Benz has allocated a substantial amount of money for the facelift of the combustion engine version of their flagship S-Class, which is set to hit the market in mid-2026. This investment demonstrates the company’s dedication to continually improving their combustion engine offerings, even in the face of a growing market for electric vehicles.
“Our engines will always be at the very highest technological level,” stated Kaellenius. This statement underlines Mercedes-Benz’s commitment to maintaining excellence in their combustion engine business. The company recognizes that it is crucial to stay competitive in the market, even as electric cars gain traction.
It is important to note that these investments in combustion engine technology do not mean Mercedes-Benz is neglecting electric vehicles entirely. In February, Kaellenius assured investors that the company would continue to enhance combustion engine models, citing slower demand for electric cars as a reason. However, Mercedes-Benz initially aimed for 100% of sales to be electric vehicles by 2030. This ambitious target has now been revised to 50% of sales being electrified vehicles, including hybrids, by the end of the decade.
Mercedes-Benz’s approach reflects a balanced strategy that takes into account both market conditions and their existing customer base. By heavily investing in combustion engine technology, the company plans to maintain its leadership in this field while gradually transitioning to electric vehicles. This strategy allows Mercedes-Benz to cater to the varying preferences and needs of their customers, ensuring a smooth and successful transition to a more sustainable future.
In conclusion, Mercedes-Benz’s increased investment in combustion engine technology showcases their commitment to continuously enhancing their offerings. While the automotive industry undergoes a shift towards electric vehicles, the company recognizes the importance of maintaining a strong presence in the combustion engine market. By investing in research and development and prioritizing technological advancements, Mercedes-Benz demonstrates their dedication to providing customers with cutting-edge and reliable vehicles.
