July 25, 2024
Electric & Hybrid Cars

Mercedes-Benz exceeding initial budget for combustion engines

Investment in Combustion Engine Technology

BERLIN — Mercedes-Benz is increasing its investment in combustion engine technology, with plans to spend 14 billion euros ($15 billion) this year on its passenger cars, according to the company’s CEO in an interview with the German publication Wirtschaftswoche.

The premium carmaker is focusing on upgrading its factories and investing in research and development. It is also enhancing the drive train of its hybrid cars to ensure longevity well into the next decade, said Ola Kaellenius, the CEO.

In addition, Mercedes-Benz has allocated significant resources for a facelift of the combustion engine version of its flagship S-Class, set to be released in mid-2026.

Kaellenius emphasized the company’s commitment to maintaining top technological standards for its engines to sustain its combustion engine business beyond 2027/28.

Market Strategy Shift

Earlier this year, Mercedes-Benz announced its intention to continue improving combustion engine models due to slower demand for electric cars. While the company had aimed for 100% of sales to be all-electric by 2030, it now anticipates that only 50% of sales will be electrified vehicles, including hybrids, by the end of the decade.

 

FAQs

Q: Why is Mercedes-Benz increasing its investment in combustion engine technology?

A: The company is focusing on maintaining the technological superiority of its engines to ensure the continued success of its combustion engine business.

Conclusion

In conclusion, Mercedes-Benz’s strategic decision to invest more in combustion engine technology reflects its dedication to innovation and competitiveness in the automotive industry. By prioritizing advancements in both hybrid and combustion engine models, the company aims to meet market demands while staying at the forefront of technological development.

Leave a Reply

Your email address will not be published. Required fields are marked *