Mercedes develops new V8 engine as EV sales stall
By BLOOMBERG | 27 February 2025
STUTTGART: Mercedes-Benz Group AG is developing a new combustion engine, becoming the latest automaker to slow its electric-car push in response to sluggish sales.
The German company’s AMG performance division is working on a next-generation V8, changing course on a previous decision to stop developing engines running on fossil fuels. It will be accompanied by a small battery and electric motor for additional power.
Like other automakers, Mercedes previously said it wouldn’t develop new combustion engines beyond the generation designed to comply with the European Union’s emissions regulations.
But since taking the old V8 engine out of its entry-level lineup, AMG has surrendered market share to BMW AG’s M motorsport division.
The company described the development of a new V8 with a so-called mild hybrid electric system as a “strategic evolution.”
Mercedes isn’t the only automaker to return to its combustion engine lineup. Porsche AG earlier this month said it will take an €800 million (RM3.7bil) hit this year tied to adding more combustion engine and plug-in hybrid models after disappointing EV sales.
Mercedes had already signalled a shift in direction. The company recently pushed back its electrification target by five years, reaffirming investment in combustion engines.
The carmaker now expects hybrids and EVs to comprise half of sales by 2030. The original target, set in 2021, envisioned a predominantly all-electric lineup by 2025.
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Autos Mercedes-Benz
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