Mercedes-Benz is preparing one of the most ambitious product expansions in its history, with more than 40 new models scheduled to arrive by the end of 2027. Behind this rapid expansion is a strategy built around powertrain diversity, advanced electrification, next-generation battery technology and software integration, with innovations from Formula 1 playing an increasingly important role in the development of production cars.
Rather than committing to a single propulsion technology, Mercedes-Benz intends to offer customers a broad range of fully electric and hybrid vehicles tailored to different markets, driving habits and expectations. The approach combines more than 140 years of engineering experience with modular vehicle architectures, digital simulations and extensive real-world testing.
At the heart of this strategy is the Mercedes-Benz Operating System (MB.OS), which integrates key vehicle functions into a unified software platform. Designed to work across different powertrains, the system enables Mercedes-Benz to standardise essential technologies while adapting each vehicle to its intended role.
The objective is straightforward: regardless of whether a Mercedes-Benz is powered by electricity, a hybrid system or a combustion engine, it should deliver the same familiar combination of comfort, safety, refinement, sportiness and precision.
Mercedes-Benz Is Expanding Its Powertrain Strategy
Mercedes-Benz believes that the powertrain remains one of the most important factors in determining a vehicle’s character. Engine response, torque delivery, efficiency and refinement all influence how a car feels behind the wheel, making the development process about much more than achieving impressive figures on a specification sheet.
According to Jörg Bartels, Vice President of Powertrain Development at Mercedes-Benz AG, the company is focused on matching technology to real customer needs rather than pursuing a universal solution.
That philosophy influences everything from the calibration of accelerator response to the way a vehicle behaves during motorway acceleration, hill starts, towing or low-speed urban driving.
Development begins with an analysis of real-world driving behaviour. Engineers translate customer usage patterns into technical targets, then use computer simulations to evaluate power outputs, torque characteristics, gear ratios and control strategies. Once a suitable configuration has been identified, it undergoes testing on specialised test benches under different loads and temperatures before moving into vehicle testing.
Suspension, braking and steering systems are developed alongside the powertrain to ensure that every component works as part of a coherent whole. The result is intended to be a consistent Mercedes-Benz driving experience across an increasingly diverse model range.
Modularity is central to making this strategy commercially viable. By sharing components, software foundations and engineering solutions across multiple vehicles, Mercedes-Benz can accelerate development, control costs and introduce new technologies to more market segments.
Modular Hybrid Engines Will Continue to Play a Key Role
Despite its significant investment in electric mobility, Mercedes-Benz is continuing to develop combustion engines and hybrid powertrains.
Its FAME (Family of Modular Engines) programme provides a scalable foundation for petrol and diesel hybrid applications, allowing the company to adapt engine technology to vehicles ranging from the GLA to the flagship S-Class.
These engines incorporate an all-aluminium crankcase featuring NANOSLIDE technology, cylinder heads with partially integrated exhaust manifolds, segmented-turbine turbochargers and compact intercooling systems. Positioning the exhaust system close to the engine also supports efficient thermal management.
The second-generation integrated starter-generator, known as ISG 2.0, contributes to improved fuel efficiency while providing additional electric assistance. Combined with a common software architecture through MB.OS, the modular approach allows Mercedes-Benz to fine-tune hybrid systems for different vehicle sizes and performance requirements.
The strategy reflects the company’s view that electrification will develop at different speeds across global markets. Hybrid technology can offer reduced fuel consumption and improved responsiveness without requiring customers to adapt to fully electric driving and charging.
Mercedes-Benz Is Scaling Its 800-Volt Electric Architecture
On the fully electric side, Mercedes-Benz is extending a modular powertrain architecture derived from the technology developed through its VISION EQXX programme.
The architecture is designed to accommodate a wide range of vehicles, including the CLA, CLA Shooting Brake, GLB and GLA, as well as the GLC and C-Class. Each application can be tailored to its segment, balancing efficiency, everyday usability, long-distance comfort and performance.
The next stage of development will extend the 800-volt electrical architecture to larger vehicle categories, including the E-Class and S-Class.
An 800-volt system can offer substantial charging and efficiency advantages when paired with compatible battery and charging hardware. It allows higher power transfer at a given current, helping engineers manage electrical losses and support rapid charging without relying on excessively high currents.
Mercedes-Benz is approaching the electric powertrain as an integrated system rather than a collection of separate components. The battery, electric drive unit, charging hardware, thermal management and software must work together to minimise energy losses between the battery cells and the wheels.
That integration is particularly important for long-distance driving, where energy efficiency, charging speed and sustained performance all influence the overall ownership experience.
The New Electric Drive Unit Combines an 800-Volt System With Two Gears
One of the key components of the new electric powertrain is the Electric Drive Unit 2.0 (EDU 2.0), which Mercedes-Benz has developed in-house and manufactures within its own powertrain production network.
Designed from the outset around an 800-volt electrical system, the unit applies high-voltage technology throughout the relevant electric drive system, including components such as the air-conditioning compressor. Mercedes-Benz describes this as a first for the entry-level segment.
The inverter uses silicon-carbide technology to improve electrical efficiency, helping reduce energy losses during the conversion of electrical power for the drive motor.
Another important feature is the two-speed transmission with a dog clutch. While many electric cars use a single-speed gearbox, a two-speed arrangement can help reconcile competing demands for strong acceleration, high-speed cruising and efficient energy consumption.
A lower ratio can support acceleration and torque delivery, while a higher ratio can help the motor operate more efficiently at sustained higher speeds. The objective is to achieve a broader range of useful operating conditions without compromising everyday drivability.
The EDU 2.0’s compact construction also helps preserve cabin space, demonstrating how powertrain engineering can influence vehicle packaging as well as performance.
Mercedes-Benz Is Developing New Battery Chemistries to Improve Range and Reduce Costs
Battery technology remains another major strategic priority for Mercedes-Benz. Rather than relying on a single cell chemistry across its entire portfolio, the company intends to tailor battery systems to different vehicle segments and customer requirements.
Some applications prioritise long driving ranges, while others place greater emphasis on charging performance, power delivery, packaging or affordability.
Mercedes-Benz defines the technical requirements, develops battery systems and integrates them into its vehicles. At the same time, it is investigating new cell chemistries designed to improve energy density, shorten charging times and reduce the use of expensive or strategically sensitive raw materials.
One development direction combines lithium manganese oxide (LMO) with nickel manganese cobalt oxide (NMC). Increasing the proportion of manganese while reducing the use of nickel and cobalt could provide an attractive balance between energy density and battery cost.
The company is also advancing lithium nickel manganese oxide (LNMO), a promising chemistry that could eliminate cobalt and significantly reduce nickel requirements compared with conventional NMC cells.
LNMO’s potential high-voltage operation, reaching up to five volts at the cell level, is particularly interesting. Mercedes-Benz identifies the possibility of achieving up to 30 percent greater range than lithium iron phosphate (LFP) batteries at comparable weight and packaging volume.
However, these figures represent potential advantages rather than guaranteed improvements in production vehicles. The ultimate benefits will depend on cell design, durability, thermal management, manufacturing costs and the performance of the complete battery pack.
More compact and lighter battery systems could also give designers greater freedom when developing future electric vehicles. Reducing dependence on critical raw materials would provide additional flexibility as battery supply chains and regulations continue to evolve.
Solid-State Batteries Move Closer to Real-World Testing
Mercedes-Benz is also pursuing solid-state battery technology through partnerships with Factorial Energy and ProLogium.
Solid-state batteries replace the conventional liquid electrolyte used in many lithium-ion cells with a solid electrolyte. Depending on the chemistry and design, this could enable higher energy density, improved packaging and potential safety benefits.
A significant milestone in Mercedes-Benz’s development programme came when a lithium-metal solid-state battery developed with Factorial Energy was tested in an EQS-based development vehicle.
The car covered 1,205 kilometres from Stuttgart to Malmö without recharging, demonstrating the potential of the technology for long-distance electric travel.
The achievement is an important indication of what solid-state batteries could eventually offer, although a development vehicle’s performance does not automatically translate into production-ready technology. Manufacturing scalability, charging behaviour, durability, safety validation and cost remain essential challenges before widespread commercialisation.
Mercedes-Benz is continuing to test next-generation cells, including ProLogium’s Gen4 technology, with a focus on performance, safety and thermal characteristics. The company is also evaluating cells from other partners and working on its own developments.
The programme incorporates expertise from Mercedes-Benz’s motorsport operations in the United Kingdom, underlining how knowledge developed in high-performance engineering can contribute to future road-car technology.
Formula 1 Technology Is Influencing Mercedes-Benz Road Cars
Mercedes-Benz is strengthening its collaboration with Mercedes-AMG High Performance Powertrains (HPP), the company’s Formula 1 powertrain specialist based in Brixworth, England.
HPP develops and manufactures Formula 1 powertrains for the Mercedes-AMG PETRONAS Formula One Team and customer teams. Its contribution to road-car development extends beyond transferring individual components from racing cars into production vehicles.
Instead, the collaboration focuses on sharing engineering knowledge, development techniques and approaches to solving complex technical challenges under demanding time constraints.
The electric exhaust-gas turbocharger introduced in the latest development of Mercedes-Benz’s M 252 petrol engine is a clear example of this relationship.
Formula 1 programmes place enormous emphasis on energy management, thermal efficiency, rapid response and extracting maximum performance from compact powertrain systems. Those same principles can be valuable when engineers seek to make production engines more responsive and economical.
For Mercedes-Benz, the aim is to translate specialist motorsport expertise into improvements that drivers can experience in everyday conditions.
The M 252 LS Is Mercedes-Benz’s Most Powerful Four-Cylinder Compact-Class Engine
One of the most notable developments is the new M 252 LS petrol engine, an evolution of the 1.5-litre M 252 introduced previously.
Mercedes-Benz quotes a combined output of 170 kW from the combustion engine plus an additional 23 kW from the electrified system. This makes it the most powerful four-cylinder engine in the brand’s compact class, according to the company.
The engine also introduces an electrically assisted exhaust-gas turbocharger rated at 5 kW, powered by the vehicle’s 48-volt electrical system.
Unlike a conventional turbocharger that relies primarily on exhaust-gas energy to accelerate its turbine, an electrically assisted system can use an electric motor to help the turbocharger build boost more quickly. This can reduce turbo lag and improve throttle response, particularly when engine speed and exhaust flow are relatively low.
The result should be more immediate acceleration across a wider portion of the rev range, alongside the potential for improved efficiency.
The technology builds on concepts developed and used by the Mercedes-AMG PETRONAS Formula One Team over many years, although the production engine has been engineered for the different demands of road use.
Mercedes-Benz also claims measurable benefits in the new GLB 250. Compared with the previous-generation GLB 250 equipped with the M 260 engine, the M 252 LS-powered model accelerates approximately 0.1 seconds faster while producing around 17 percent fewer CO2 emissions.
An additional 2 kW electric turbocharger function can recover energy from the exhaust system and convert it into electrical energy. Two newly added Lanchester balance shafts further reduce engine vibrations, helping deliver the smooth running expected from a Mercedes-Benz.
Together, these changes illustrate how relatively small combustion engines can continue to evolve through electrification and more sophisticated engineering rather than relying exclusively on increased displacement.
MB.OS Will Connect Different Powertrains Through One Software Platform
As Mercedes-Benz expands its portfolio, software is becoming an increasingly important part of its engineering strategy.
The Mercedes-Benz Operating System is designed to integrate major vehicle functions into a common, adaptable architecture. By providing a shared software foundation across different powertrains, MB.OS can help simplify development while allowing individual models to retain their distinct characteristics.
This is particularly important as combustion engines, hybrids and electric vehicles increasingly share vehicle platforms, electronic systems and digital features.
A common architecture can make it easier to coordinate energy management, powertrain controls and other vehicle functions, while supporting software updates and future technical improvements.
The broader ambition is to ensure that technological complexity does not compromise the driving experience. Drivers should benefit from more sophisticated systems without needing to understand the engineering behind them.
For Mercedes-Benz, digital integration is therefore not simply about adding more connected features. It is also about making the vehicle’s fundamental systems work together more intelligently.
Mercedes-Benz Is Betting on Technological Diversity
Mercedes-Benz’s product strategy for the period leading up to the end of 2027 reflects a major shift in how the company approaches vehicle development.
Rather than choosing between combustion engines and electric propulsion, it is investing in modular hybrid systems, dedicated electric drive units, 800-volt architectures, next-generation batteries and software that can support different technologies across the portfolio.
The strategy also demonstrates the growing importance of collaboration between traditional automotive engineering, battery research and motorsport development.
Solid-state batteries still require further development before their full commercial potential can be realised, while new battery chemistries must overcome practical manufacturing and durability challenges. Meanwhile, hybrid engines and electrically assisted turbochargers offer a way to improve efficiency and responsiveness in vehicles that continue to use combustion power.
With more than 40 new models planned by the end of 2027, Mercedes-Benz is attempting to combine these technologies into a broader and more flexible product range.
The central challenge will be delivering meaningful benefits to customers while keeping development costs, complexity and production requirements under control. If the strategy succeeds, future Mercedes-Benz models could offer a wider choice of propulsion technologies without sacrificing the comfort, refinement and driving character that define the brand.
For buyers, the most important developments may not be the headline numbers alone. Faster charging, improved efficiency, more responsive engines and longer electric driving ranges could ultimately make the biggest difference in everyday use.
Source: Mercedes-Benz