Mercedes-Benz plans to increase spending on internal combustion engine technology, with €14 billion allocated for passenger cars alone in 2023. Despite prioritizing electric vehicle sales by 2030, the company is investing in combustion engine production, research, and development to maintain its viability “well into the next decade.” In particular, Mercedes-Benz has focused on enhancing the combustion engine of its flagship S-Class, aiming to keep its engines at the highest technological level. This move comes amidst weakening demand for electric vehicles and revised expectations from the company, which now projects only 50% of sales to be electrified by 2030, including hybrids.Mercedes-Benz plans to increase spending on internal combustion engine technology, with €14 billion allocated for passenger cars alone in 2023. Despite prioritizing electric vehicle sales by 2030, the company is investing in combustion engine production, research, and development to maintain its viability “well into the next decade.” In particular, Mercedes-Benz has focused on enhancing the combustion engine of its flagship S-Class, aiming to keep its engines at the highest technological level. This move comes amidst weakening demand for electric vehicles and revised expectations from the company, which now projects only 50% of sales to be electrified by 2030, including hybrids.
MERCEDES-BENZ is reportedly set to spend more on internal combustion engine technology than previously planned, including €14 billion ($22.6 billion) on passenger cars this year alone.
Talking to German publication Working weeks This week, Mercedes-Benz CEO Ola Kallenius said the manufacturer is continuing to invest in production facilities, research and development and overhauling its hybrid powertrains to ensure the technology remains viable “well into the next decade.”
Mr Kallenius also said Mercedes-Benz had spent “much more” than it normally would on a facelift of the combustion engine of its flagship S-Class, which is due to go on sale internationally in mid-2026.
“Our engines will always be at the highest technological level. Otherwise, we would suddenly shut down our combustion engine business in 2027/28,” he said.
Mr Kallenius’ comments come after the executive told investors in February that the company would continue to revise internal combustion engine models amid weakening demand for electric vehicles.
Like many other OEMs, Mercedes-Benz has long said it is preparing for 100 percent electric vehicle sales by the end of this decade “where market conditions allow,” but Mr. Kallenius said earlier this year that the company now expects only 50 percent of sales to be electrified by 2030 — including hybrids.
