Mercedes-Benz has announced that it will invest more than R271 billion in the further development of petrol and diesel engines.
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In conversation with German publication WirtschaftsWocheChief Executive Officer (CEO) of Mercedes Benz Group Ola Källenius has confirmed that the German brand will invest €14 billion – which at the current Rand to Euro exchange rate equates to a whopping R271,541,620,000 – in the development of high-tech combustion technology, as demand for fully electric, battery-powered vehicles seems to be declining.
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As a reminder, the German brand originally aimed, like many other car manufacturers, to become a company that produces exclusively electric vehicles by 2030. However, a report from the Australian publication shows car salesthe Stuttgart-based brand said it will continue to offer products powered by combustion engines – whether petrol or diesel, or both – in several countries long after the turn of the century, while introducing new models with combustion engines three years earlier.
The information that Källenius recently shared further supports this statement. In the interview, Källenius said that he expects ICE technology to remain relevant beyond 2030. However, it is a fair bet that the upcoming range of newly developed petrol and diesel engines, like the new C63 SE Performance, will include hybrid technology to some extent.
While the bulk (although an exact figure has not been shared) of this investment will go towards developing new petrol and diesel engines, a large portion of it has been earmarked for the revised petrol-powered S-Class. .
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It’s worth noting, however, that the company hasn’t delayed its transition to an all-electric lineup of vehicles. The automaker has just pushed back the original date by a decade. According to car salesKällenius has stated that the three-pointed star brand aims to be a carbon neutral company by 2024.
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