It is safe to say that quite a few manufacturers were way too ambitious with their electrification goals and Mercedes is the latest to ‘admit’ this as they commit a massive amount of funds into good old internal combustion engines.
In an interview with German publication Wirtschaftswoche, CEO Ola Källenius said ICE technology “will last well into the 2030s.”
To ensure these engines meet increasingly stringent regulations, massive investments are necessary. This year the German brand is spending €14 billion for “high-tech combustion technology” on passenger cars alone. This significant sum includes electrification and digitalizing and although they did not disclose just how much will be focused on ICE, the CEO did admit that it is “more money than previously planned”.
Källenius made special mention of the updated S-Class coming in 2026. “We have invested a lot more in the model update of the new combustion engine S-Class than we normally spend on a facelift.” Without spending big money on gasoline and diesel engines, the luxury brand “would suddenly stall our combustion engine business in 2027 or 2028.”
As expected he did mention that future engines will be electrified to some extent so we can expect a lot more hybrids joining the lineup.