Mercedes-Benz has taken a significant step to secure the future of internal combustion engines (ICE). The company announced a €14 billion (approximately $15 billion) investment in its passenger vehicle division, focusing primarily on the S-Class model. Here are the details:

Mercedes invests $15 billion to preserve internal combustion engines

Earlier this year, Mercedes-Benz decided to shift its focus slightly from electric vehicles (EVs) to hybrid vehicles. CEO Ola Källenius announced this investment in ICE vehicles in an interview with the German newspaper Wirtschaftswoche. This investment will be directed towards “high-tech internal combustion engine technology,” electrification, and digitalization. Although specific amounts dedicated to ICE development were not disclosed, a significant portion will be allocated to the flagship S-Class model.

The updated Mercedes S-Class, expected to launch in 2025, is being developed to comply with stricter emission regulations (Euro 7 and China 7). Källenius noted that this update involves a much larger investment than usual, enhancing not just the appearance but also the engine technology.

Regarding electric vehicles, Mercedes-Benz continues to develop the MB.EA Large architecture, which will underpin the new EQS and EQE models. Despite earlier rumors, this EV platform is progressing rapidly. The company is also planning eight battery production facilities, although these will be completed later than initially planned.

Despite appearing to step back slightly from its electric vehicle strategy, Mercedes-Benz remains committed to becoming carbon-neutral by 2040. The company is simply taking a different path to achieve this ultimate goal.

How do you view Mercedes’ significant step in developing the S-Class model and the future of internal combustion engines? Share your thoughts in the comments section below.