S-Class EXCLUSIVE: Next-gen S-Class to go all-hybrid in U.S., save AMG variants

[cawimmer430]

Location: London...Congestion charge, I guess for execs living in London and other big cities, it will make sense Centurion

Last I heard, hybrids were not exempt from the congestion charge anymore.

 

[sako97]

NEW YORK -- To meet tightening global fuel-economy standards, Daimler executives in Germany are considering a radical plan: make the flagship S-class a hybrid-only lineup.

Mercedes-Benz dealer sources tell Automotive News that Stuttgart executives are considering switching all future S-class luxury cars -- including high-performance AMG models -- to full hybrids, offering no models with only internal-combustion engines.

The idea is drawing fire from some U.S. dealers, who worry that hybrids are not perceived as true performers in the market.

The switch would take place globally with the next-generation S class, which is due in Europe in 2013 and in North America a year later.

Only a handful of Mercedes dealers have been briefed on the plan. Those dealers will meet this week with Joachim Schmidt, sales and marketing chief at Mercedes-Benz Cars, at The Masters golf tournament in Augusta, Ga. Mercedes is a sponsor.

Dealers say they have been vocal about their opposition to such a switch, which they feel would change the perception of the brand.

Tommy Baker, chairman of the Mercedes-Benz dealer board and a Charleston, S.C., Mercedes dealer, said: "The most important thing in the American market -- regardless of hybrid, lithium or electric cars -- is that we Americans are different than any market and we are going to want those gasoline engines."

For S-class buyers, Baker said, the "goal is not gas mileage."

Two company sources say the board is considering the shift because it would help Mercedes-Benz reach strict European CO2 emissions standards and tougher corporate average fuel economy standards in the United States by mid-decade.

The board also wants to use the flagship S class to highlight the company's hybrid technology. The S class traditionally has been used to showcase technological advances in the Mercedes lineup, and company executives believe S-class buyers are more willing to pay for costly green technology.

Competition is also a factor. Lexus is the leader in premium vehicle hybrid sales. Last year 10 percent of all Lexus models sold in the United States were hybrids.

A decision by the Daimler board is expected within three months, one company source said.

Ernst Lieb, CEO of Mercedes-Benz USA, confirmed Daimler is working on various "hybrid solutions for the S class."

"It isn't how will we do it, yes or no. The question is: Do we need other variations?" Lieb said last week at the New York auto show.

He would not reveal details of the discussions, but the dealer sources said the hybrid technology being proposed is in the development stage and would use lithium ion batteries. The S-class models would be full hybrids.

A mild hybrid uses an electric motor and acts as a start/stop system, but the electric motor does not drive the vehicle by itself. A full hybrid can be driven short distances using only the electric motor.

Mercedes-Benz now sells only a mild hybrid, the S400 -- which is the entry model for the S class and priced at $88,825, including destination. With an electric motor teamed with a 3.5-liter V-6 gasoline engine, the S400 has 30 percent better fuel economy than a comparable S550.

The S400 is the only six-cylinder S class sold in the United States.

But U.S. dealers say hybrid versions of the S550 V-8 model and S600 V-12 models, and the costly S63 AMG and S65 AMG, would go too far, and they fear they wouldn't be able to sell the cars. The S65 AMG costs $202,025, including freight, and is purchased for performance, not fuel economy.

The biggest dealer concern is with an AMG hybrid and whether it would sell against gasoline-powered versions of the Audi S8 and BMW 7 series.

http://www.autonews.com/apps/pbcs.dll/article?AID=/20100405/RETAIL03/304059950/1168

In the US the S400 has only been successful in urban locals such as NY/NJ & SoCal, so I believe a full hybrid S-Class range is not a good idea.

 

[Wolfgang]

^
Great post.

 

[Wolfgang]

Tommy Baker

Tommy Baker, chairman of the Mercedes-Benz dealer board and a Charleston, S.C., Mercedes dealer, said: "The most important thing in the American market -- regardless of hybrid, lithium or electric cars -- is that we Americans are different than any market and we are going to want those gasoline engines."

 

[Merc1]

Its a stupid plan and everyone knows it. Everyone don't want no stinking hybrid. S-Class means choice and that means gasoline, diesel, and hybrid. Something for everyone. Not forcing hybrids on everyone. It won't happen.

M

 

[HighestOfHigh]

If they want to offer more then one hybrid model, it would be best to have a S500,600 Hybrid, but still offer the regular S550 and S600. That would make better sense.

 

[Merc1]

Just one hybrid model, the S500 plug in hybrid that they've already shown....that should be it. Hybrids really aren't all that, especially in this segment. Ask Lexus.

A S600 hybrid would be a waste like the Lexus is.


M

 

[Wolfgang]

A S600 hybrid would be a waste like the Lexus is.

Lexus LS 600h sales dropped 64% to 9 units in March...

The Lexus RX hybrid saw a 7.4% growth to 1,251 units, while the GS hybrid dropped 26.2% to 31 units and the LS 600h dropped 64% to 9 units. The new dedicated Lexus HS 250 hybrid sold 1,494 units. http://www.greencarcongress.com/2010/04/hybrids-20100405.html#more

 

[HighestOfHigh]

Just one hybrid model, the S500 plug in hybrid that they've already shown....that should be it. Hybrids really aren't all that, especially in this segment. Ask Lexus.

A S600 hybrid would be a waste like the Lexus is.


M

Well I would rather just get an altenative, then for them to just kill off the regular models.

 

[Merc1]

Lexus LS 600h sales dropped 64% to 9 units in March...

Clearly more power and performance is not what buyers want in this segment for hybrids. BMW I think is going to find this out the hard way with their X6 and 7-Series hybrids. People that think "hybrid" want MPG, not all out power.

The LS600hL is technical marvel, but it makes absolutely no sense whatsoever next to the LS460L. The LS460L is nearly as fast, gets the same real-world MPG and cost much less. The LS460L is already fast enough to get you put in jail in anywhere in the U.S. The car is pointless.


M

 

[MBZFAN]

Let me preface this comment by saying that i am not a fan of hybrid vehicles, but if my fellow motorists have green flowing though their veins, I am fully behind them humming along at 50 mpg.

With that being said, they will need to pry my bloody fingers from the steering wheel as they attempt to extricate me from my traditionally powered gasoline V8 (or V12) with the marvelous exhaust sound drowning out my screams. Until gasoline reaches some insane price, I will continue to pay the Gas Guzzler tax and enjoy fine driving as it was meant to be in a car that doesn't plug into an electrical outlet.

Speaking of batteries, I understand the battery pack warranty is longer than the 4yr/50k mile Mercedes vehicle warranty. I was surprised however to discover that the S400 Hybrid replacement unit is over $9000.00. The real shock (pardon the pun) will come to the Prius owners who are facing a $4000 battery pack replacement cost at their local Toyota dealer.

 

[Wolfgang]

Just checked up on the S400 lithium ion battery.

The current MBUSA part number is 221 343 05 00 on http://epc.startekinfo.com

and it lists for $17,550.00.

 

[Wolfgang]

The battery list price dropped to $11,590.00.

The current part number is 221 343 11 00 on http://epc.startekinfo.com