More than planned

Mercedes is investing more in combustion engines again

Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG

(Bild: Mercedes-Benz)

The major shift by most car manufacturers away from combustion engines and towards electricity is crumbling. After Volkswagen recently announced that it would be diverting billions into combustion engines, Mercedes is now also making similar statements.

The Stuttgart-based company is once again focusing more of its investments on petrol engines. Mercedes is "once again investing more money in combustion engines than previously planned", Group CEO Ola Källenius told WirtschaftsWoche. In 2024 alone, Mercedes will invest "14 billion euros in research and development and in our plants with a focus on digitalization, electromobility and high-tech combustion technology" in the passenger car division.

Mercedes will now "properly" revise the drivetrain of the electrified high-tech combustion engines so that "it will last well into the 2030s", Källenius told WirtschaftsWoche. All "relevant combustion engines and transmission combinations" would also be made fit for new regulations such as EU7 or China 7. "Our engines will always be at the cutting edge of technology. Otherwise we would suddenly choke off our combustion engine business in 2027/28."

The company has also "invested a lot more" in revamping the current S-Class than would normally be the case. The facelift will be launched in mid-2026.

However, the manager refuted rumors that there will be no new electric S-Class. "The project is running at high speed." After all, Mercedes is still aiming to "become CO2-neutral by the end of the next decade."

The German car manufacturer had long stated that it was preparing to only sell purely electric models from 2030. However, due to the weakening demand for electric cars, Mercedes is preparing for a later farewell to the combustion engine.

Volkswagen recently announced that of the 180 billion euros to be invested by 2028, one third will be invested in the further development of combustion engines.