Mercedes-Benz is investing more than previously planned in combustion engine technology, including 14 billion euros ($15 billion) this year on its passenger cars, its chief executive told German publication Wirtschaftswoche.
The premium carmaker was investing in factories and in research and development, reworking the drive train of its hybrid cars so that it "lasts well into the next decade", Ola Kaellenius said in comments published on Thursday.
It had also spent "much more" than it usually would on a facelift of the combustion engine version of its flagship S-Class, due to hit the market in mid-2026.
"Our engines will always be at the very highest technological level. Otherwise, we would suddenly stall our combustion engine business in 2027/28," he added.
Kaellenius' comments come after the executive told investors in February that the company would keep sprucing up combustion engine models amid slower demand for electric cars.
The carmaker had long said it was preparing for 100% of sales to be all-electric by 2030 "where market conditions allowed", but Kaellenius said earlier this year the company now expected just 50% of sales to be electrified vehicles, including hybrids, by the end of the decade.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
