Mercedes-Benz Confirms Huge Investment To Keep ICE Alive

Mercedes-Benz has already invested 14 billion euros, or around $15 billion, in its passenger car division this year – more than it previously planned. Mercedes-Benz CEO Ola Kallenius told German newspaper Wirtschaftswoche about this huge spending, which follows the company’s move earlier this year to backtrack from its EV push and focus on hybrids instead.

According to Kallenius, the investment is reserved for “high-tech combustion technology,” electrification, and digitalization, but didn’t specify how much goes into ICE development. However, he commented that it’s “more money than previously planned,” and the Three-Pointed Star’s flagship, the S-Class, benefits directly from this spending.

Refreshed S-Class

The Mercedes boss was talking about the upcoming S-Class update, expected to arrive in 2025. With emission regulations, namely, Euro 7 and China 7, getting stricter and stricter in light of the fight against global warming, Mercedes-Benz is spending money on development to keep ICE alive well within the 2030s. “We have invested a lot more in the model update of the new combustion engine S-Class than we normally spend on a facelift,” Kallenius told the publication.

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The refreshed S-Class has already been spotted with its fascias covered, signaling changes are coming aesthetically. However, this recent development means the flagship sedan will also receive changes under the hood, though we’re not expecting improvements in terms of performance.

What About The EQS?

With its focus on ICE, Kallenius refuted previous rumors that its new EV platform, the MB.EA Large architecture, had been scrapped. This platform will underpin the next-generation EQS and EQE, and according to the head honcho, it’s still underway and “running at high speed.” More importantly, the eight factories that will produce batteries for its EVs are still on the cards, albeit will be ready “a little later” than previously planned.

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Mercedes-Benz may have backed down a bit on its aggressive push for electrification, but Kallenius said its aim of being carbon-neutral by 2040 still stands. That’s still the company’s ultimate goal, though it only took a different route to get there.