Mercedes-Benz To Introduce First Hybrid

Washington DC September 15, 2008; The AIADA newsletter reported that in June 2009 the Mercedes-Benz will launch in Europe a 30-mpg hybrid version of its luxury S-Class sedan. Engineers say it will get 29.8 miles per gallon.

Launches in the U.S. and China will follow in September. The carmaker hasn't yet established a price for the hybrid, but Mercedes Sales and Marketing Director Klaus Maier said the premium will be less $14,000.

Cynics might say that people concerned about the environment and oil consumption should simply buy a smaller car. But Mercedes executives defend their new model. "Not everyone can drive a Smart on vacation," Maier tells BusinessWeek. "We need solutions for big cars."

Until now, Mercedes has concentrated on optimizing diesel engines. From an engineering point of view, diesel is the better technology because it offers comparable gas mileage to a hybrid—or even superior mileage in highway driving—with less weight and expense.

But the success of Toyota's luxury Lexus hybrid models showed that gasoline-oriented U.S. buyers want hybrids.

CLICK HERE For the BusinessWeek story on the S-Class hybrid.