The S400 HYBRID features the world's first lithium-ion battery in a production hybrid vehicle. The 275-hp V6 gasoline engine provides an estimated 30 miles per gallon on the highway.

ANN ARBOR, MI, May 26, 2010 -- During a recent speech at the Summit Series in Washington, D.C., Mercedes-Benz USA executive Sascha Simon told aspiring entrepreneurs that the automotive industry will go through unprecedented changes in the next 10 years caused by new laws and increased standards for greenhouse gas emissions.

"There are many buzzwords that spur the public imagination and have been touted as the best or even the only solution: plug-in hybrids, electric vehicles, power grids, charging stations, lithium-ion batteries,” said Simon, manager of advanced product planning for Mercedes-Benz USA (MBUSA). “All of these can serve the goal of creating a sustainable future transportation system. However, the notion that we all will drive short-range battery electric vehicles is not a realistic one."

Sascha Simon

Simon said there is no single solution that will address America’s reliance on gasoline and transportation issues, and drivers will always require the use of a large vehicle that can carry passengers and cargo over long distances. For these and other reasons, consumer and commercial fleets especially will not be able to rely on batteries alone.

Instead of concentrating on one new technology, Mercedes-Benz is complementing its current lineup of BlueTec clean diesel SUVs and hybrids cars by researching hydrogen electric technology. Mercedes says this technology will “significantly reduce dependence on fossil fuels without constraining customer expectations.”

Near the end of 2010, Mercedes plans to introduce hydrogen electric cars to the public.

Hydrogen electric, electric, hybrid, clean diesel, all or none of the above, the shape of tomorrow’s vehicles and the fuels that propel them will be formed by new generation of buyers.

"The road to zero emissions is not necessarily as long as most people think,” said Simon. “The speed of progress depends on government climate change programs and carbon fuel supplies, but just as important is the customers' willingness to adopt and embrace alternative fuel vehicles. We also need new and innovative thinking to increase the number of suppliers for these new technologies.”