June19
Hybrid technology will be profitable for Mercedes-Benz the instant its Hybrid S400 S-Class debuts in the U.S. in September, executives insist. While Toyota is known to have absorbed enormous losses to keep its Prius Hybrid at the forefront of the green revolution, that’s not an approach Benz favours.
Even though the Hybrid S400 will be the first car in the world to use Lithium-Ion battery technology to drive its electric motor, Daimler has no intention of sacrificing profit to establish a Hybrid beach head.
“It is still our target to be profitable with all of our hybrid vehicles straight away,” the head of Mercedes-Benz’s Research and Development, Dr Thomas Weber insisted told Leftlane.
Hybrid technology may be a fuel saver in cities, but running two engines (petrol or diesel, plus an electric motor) adds weight, cost and complexity.
“Looking to the productions costs, you are putting two engines in one car and it’s clear that the majority of Hybrid cars will be gasoline based because gasoline engines cost less than diesel engines,” Dr Weber explained.
“Most hybrids have a price premium but the question is whether the premium is enough to earn money.”
“On smaller cars, that answer is ‘no’ right now, but we are developing modular architecture for hybridization and we believe it will be possible to be profitable straight away.”
“It’s important to deliver more than fuel consumption as the core of the car, even if it is a hybrid,” Dr Weber insisted.
“Also, we can’t just add cost with the products. We have to reduce cost somewhere else or the customer will pay more.”
While the Japanese car companies have gained environmental kudos for their hybrids, the Europeans have shied away from the technology, insisting that, in the real world, diesel engines offered better fuel consumption results at lower prices. While hybrids deliver strong economy benefits in stop-go traffic, their figures on highways are much less convincing.
“It’s important that we decide what are the key technology fields where we want to have a leading position,” Dr Weber explained.
“It will not be possible for a brand to have a leading position in every field. That was our strategy before, but now we have to decide what are the inventions that add value to the customer.”
Words by Michael Taylor.
Yeah, who would have thought it’d be easier to hide the added several thousand dollars of hybrid technology in a car that cost $125,000+ rather than one that costs $25,000…
They’ve got a lot of buzzwords thrown in there as to why they’ll actually be profitable, but at the end of the day, they’ll be profitable because they can jack up the price of the S-Class by $25,000 to cover the costs and people wouldn’t flinch.
What?! No Camaro story du jour yet? May I humbly suggest this headline: “2010 Chevy Camaro named Official Vehicle of SEMA Show.” There.
I love this car and it would be awesome if I can buy this car under $60K.
^ You’re gonna buy an S-class for under $60k? Let me know when you find it, I’ll come buy a few myself.
^^^ You can get one with cherry busted off the lease
Actually it’s good stategy. The mindset of customers for high end Mercs is to present the illusion of being green rather than really taking it seriously. A hybrid S-Class would be a great novelty as they commute to and from the mansion with the year-round heated outdoor pool and the 50 inch plasma in every room.
Is it going to be tha that ugly? Makes a Prius or that hydrogen Hond look good.
90% of people who buy Mercedes cars are in it for the badge and nothing else so its no big surprise that people will jump at the chance to not only own a Mercedes, but have sensitivity and awareness of the environment included on the price tag. A lot of rich people enjoy buying up the best of the best of brand name stuff and then they throw you witty bullets from the brochure hoping you might respect them for being a tastless conformist. The illusion is over however and Mercedes has been known as an unreliable automaker for years now but hey; that doesn’t stop all the ****ing wannabes around from buying up C230 sport sedans thinking it turns them into a tailored suit wearing exec.
More diesels, less hybrids.