Confirming what was said in last month’s exclusive interview with Leftlane, Mercedes-Benz’ R&D boss Dr. Thomas Weber today announced all Mercedes-Benz models will offer turbocharged engines by 2010.

The move is meant to lower emissions while increasing fuel economy, as modern turbocharger systems are a relatively low-cost and efficient way of achieving both goals. The main advantage will include tighter packaging than an equivalent, naturally aspirated engine, allowing cars to be smaller and therefore lighter.

“All our vehicles will have turbocharged engines in series production by the end of 2010 at the latest,” Weber told reporters, including those from Automotive News Europe at a press event in Germany.

All automakers selling vehicles in Europe will have to meet new average fleet emission standards set forth by the European Commission by 2012 or face fines. Mercedes-Benz will need to cut its levels from the current 178 grams of carbon dioxide emitted per kilometer to 138g/km; a 29 percent decrease.

But Mercedes won’t stop there, and also plans to introduce technology that will further cut emissions, such as stop-start systems, and focusing on developing more hybrids. The flagship S-class sedan, for example, will be offered as a hybrid in 2009, most likely badged as the S400. Zero-emission cars are also on the books, with an electric version of the Smart ForTwo planned to start production in 2010.

MB is also continuing work on its F700 concept (pictured) and the DiesOtto engine that uses direct fuel injection, turbocharging and variable compression. It uses diesel-like sparkless ignition during low-load conditions and a spark plug when cold or under full load. Despite displacing just 1.8 liters, it produces 238 horsepower and 295lb-ft while returning about 39mpg.

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