Mercedes To Produce Electric S-Class Vehicle in 2010

Automotive News Europe reports that Mercedes' upcoming S400 hybrid vehicles may be one step in the company's development of an electric vehicle, which will be available to consumers by 2010. Daimler, parent company of Mercedes Benz, will also have the SmartForTwo available in US showrooms by 2009. The company is also testing fuel-cell vehicle prototypes in preparation for a 2010 product launch.

Rumors of an S-class electric vehicle first surfaced in March but were not confirmed by Daimler until late last month. According to Daimler Chairman Dieter Zetsch, in an interview with Frankfurter Allgemeine Zeitung, the all-electric Benz will be built on the S-class platform. Daimler has not yet reached a conclusion regarding how it plans to handle the battery packs for the SmartForTwo and future electric vehicles.

According to interview, the company is leaning toward a leasing agreement for the batteries to make the product more cost effective to consumers. The company is also considering in-house production of the vehicle's electric motor. Currently, the S-class platform retails for anywhere between $88,000 and $195,000 in the US, depending upon the model and options. Zetsch also said that about half of the company's R&D budget is devoted to CO2 emission reduction technologies.

An all-electric version of the Smart is set to begin testing in 2009 and could reduce the per-mile cost of operation down to less than $0.03, taking its power from a highly efficient motor, an improved electric drive system and improved Li-ion batteries. Currently, the company is testing a fleet of first-generation SmartForTwo vehicles in London.

Sources: Motor Authority, ANE, BenzInsider