Gasoline and Diesel: the villains? Maybe not! Mercedes-Benz once again invests heavily in combustion engines 

Mercedes-Benz adopts mixed strategy: company reviews electrification plan and reinvests in gasoline (combustion) engines to face stricter emissions standards

Mercedes-Benz, traditionally known for its innovation in the automotive sector, is reviewing its electrification plans and directing a significant investment towards the maintenance and updating of its combustion engines. CEO Ola Källenius revealed that the company has already spent around 14 billion euros (equivalent to R$83,6 billion) in 2024, exceeding the initial budget to keep these engines active until the end of the decade, according to the Quatro Rodas website.

Billion-dollar investment in combustion engines

In an interview with the German magazine Wirtschaftswoche, Källenius explained that a substantial part of this investment in gasoline engines was directed towards updating the S-Class engines. “We are investing much more in updating the engine than we would normally spend on a facelift”, highlighted the CEO. Without this significant investment, Mercedes-Benz would risk paralyzing its combustion engine business between 2027 and 2028. The company recognizes the continued importance of these gasoline engines for at least the next decade.

Emissions standards and emergency planning

This emergency planning aims to avoid heavy fines that may arise with the implementation of Euro 7 and China 7 standards. To ensure that its new gasoline vehicles comply with these legislations, Mercedes-Benz is updating relevant engine and transmission combinations, rather than relying exclusively on electric vehicles .

This change in combustion strategy will have a significant impact on the automaker’s electrification plans. Initially, Mercedes-Benz had a target for 50% of its annual sales to be made up of electric vehicles and plug-in hybrids by 2025. However, with the new allocation of resources, it is possible that this target will not be achieved within the expected timeframe. . The ambition to become 100% electric by 2030 is also under review, with the expectation that this goal will be postponed until the end of this decade.

Gigafactories and EQS platform

In addition to electrification goals, some specific Mercedes-Benz projects will also face delays. The eight battery gigafactories, planned to strengthen the company's electric vehicle infrastructure, will be completed later than initially anticipated. However, Källenius denied rumors about the cancellation of the development of a new platform for the EQS. “The project is moving at high speed,” he said. 

Mercedes-Benz continues to invest in developing new technologies for electric vehicles, despite its investment in gasoline engines. The partnership with Geely, for example, brings the possibility of an EQS with range extender, leveraging Geely's expertise in hybrid powertrains. Recent reports, however, indicate that testing of an EQS equipped with a 1.0-liter turbocharged two-cylinder engine has supposedly ended, but the company has not confirmed these rumors.

Mercedes-Benz and carbon neutrality

Despite adjustments to the electrification schedule, Mercedes-Benz maintains its commitment to sustainability. The automaker's main objective continues to be carbon neutrality by 2040. This commitment reflects the company's strategy of balancing technological innovation with the needs to adapt to global regulatory requirements.

Mercedes-Benz's decision to invest heavily in updating combustion engines, while adjusting your electrification plans, highlights the complexity and challenges faced by automakers in an energy transition scenario. By adopting a mixed approach, Mercedes-Benz seeks to ensure compliance with emissions standards while continuing to move towards a more sustainable future.