In a major move to secure the future of internal combustion engines (ICE), Mercedes-Benz has announced a substantial investment of approximately 15 billion dollars, primarily focusing on enhancing its flagship S-Class models among other passenger vehicles. Here’s what this massive financial commitment entails.
Massive Investment to Revitalize Internal Combustion Engines
While many automotive giants are shifting their focus towards electric vehicles (EVs), Mercedes-Benz seems to be taking a slightly different route. The German automaker recently revealed its plan to invest about 14 billion euros in developing state-of-the-art ICE technologies, along with advancing electrification and digitalization within its fleet.
Mercedes CEO, Ola Källenius, explained to the German newspaper Wirtschaftswoche that a significant portion of this investment would go towards updating the S-Class models to comply with stricter upcoming emission regulations, including Euro 7 and China 7 standards. The updated Mercedes S-Class, expected to launch in 2025, will not only feature aesthetic enhancements but will also incorporate advanced motor technologies designed to meet these stringent norms.
Balancing ICE and Electric Vehicle Development
Despite the major outlay on ICEs, Mercedes-Benz is not abandoning its electric vehicle agenda. The company continues to develop the MB.EA Large architecture, which will underpin the new EQS and EQE models. Additionally, plans are still on to establish eight battery factories to support its EV production, albeit with a slight delay from the original timelines.
Commitment to Carbon Neutrality by 2040
While it may seem that Mercedes is taking a step back from its electric vehicle strategy, the luxury car manufacturer remains committed to achieving carbon neutrality by 2040. By choosing to enhance both its electric and internal combustion offerings, Mercedes is navigating a diversified path to meet its sustainability goals.
What do you think about Mercedes-Benz’s significant investment in internal combustion engine technology while still pushing forward with electric vehicles? Share your thoughts in the comments below.
