Mercedes mulling BMW i-rivalling sub-brand

According to Mercedes' Head of Sales & Marketing Ola Källenius, the three-pointed star is currently focused on zero emission vehicles and plug-in hybrids, but, nevertheless, an eco-focused sub-brand could still be on the cards for the German company. Mercedes will launch two battery-powered variants of the new smart fortwo and an updated version of the B250e before the end of the year. It's also working on a GLC that runs on hydrogen, though the zero-emissions crossover won't be ready until next year.

“What we’re going to do in terms of the road to zero emissions is invest heavily in alternative drivelines and electrification,” Källenius said. “That’s a very wide strategy, but it means that by the end of next year we will have 10 plug-in hybrid models, which, I think, is the widest portfolio of any luxury manufacturer.

“We could choose for the purpose-made electric vehicles to create some sort of sub-brand but, right now, Mercedes is focused on investing tremendous resources into the path towards zero emissions. It’s something that will affect the whole portfolio.”

In the wake of increased awareness about global warming and the sustainability of fossil fuels, carmakers now need to build cleaner cars in order to meet the stringent regulations that are scheduled to come into effect all over the planet in the coming years. But in the case of Mercedes, the firm is under additional pressure from its shareholders, who recently demanded to know why the company hasn't built a Tesla-rivaling model yet.

BMW’s eco-friendly sub-brand has also seen a lot of success in this quarter, having sold 5,456 units of its i8 supercar last year, a figure that exceeds the combined sales figure of all other hybrid sportscars by other manufacturers put together.