Mercedes-Benz CEO Dieter Zetsche told Motor Trend this week that increased cost was not going to be an issue for his company to meet new fuel economy standards. Obviously getting improved efficiency out of powertrains would make them more expensive as they have to meet U.S. CAFE and European CO₂ emissions limits. However, while U.S. executives like Bob Lutz are talking about adding $5,000 or more to the price to meet 35mpg standards, Zetsche looks at it differently. The use of clean diesels, HCCI DiesOtto engines, hybrids and fuel cells will raise prices. The higher initial purchase price will be offset for customers through reduced operating costs. According to Zetsche, if the cost premium can be recovered through fuel savings in the first 3-4 years of driving than customers will be satisfied. Mercedes also intends to protect their ten percent profit margins through increased efficiencies in other areas of the vehicle. That probably means that Mercedes owners will give up some features for improved efficiency. Of course for a premium brand like Mercedes, it's a lot easier to talk about protecting margins than it is for mainstream brands like GM and Ford. Being largely rid of the burden of Chrysler probably doesn't hurt either. Finally Zetsche says an S-Class diesel hybrid will debut in two years with DiesOtto engines about 3-5 years out.

[Source: Motor Trend]

GM isn't the only one ready for a lot of hydrogen fuel cell cars. Daimler chairman Dieter "Dr. Z" Zetsche believes that the technology for fuel cell vehicles is here today and that vehicles using the hydrogen-for-energy system will be available in five to eight years time. Zetsche also believes that hydrogen fuel cell vehicles will compare favorably with their competition, which we assume means other alternative powertrains like full-electrics and hybrids. One reason he cites as a fuel cell benefit over electric cars is range, suggesting that hydrogen electrics could travel 300 miles on a single tank of hydrogen. One unanswered question, though, is how far will pure electrics be able to go on a single charge in five to eight years time. Still, by refilling a hydrogen tank, the driver gets another 300 miles while it will likely take another full charge for the electric car. Zetsche recognizes that a potential problem area exists regarding the infrastructure that a hydrogen fueling system would require. We remain intrigued by the technology, but recognize that major advancements must be made before jumping on the fuel cell bandwagon. We also believe that other extended-range electric vehicle technologies will allow for many of the same benefits as hydrogen fuel cells.

[Source: Just-Auto (sub. req'd.)]