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The future direction of Mercedes-Benz cars is toward smaller engines and more hybrid choices as fuel prices skyrocket and customers opt for a more efficient and greener alternative. Carmakers see a common solution to the problem: smaller engines and up the use of forced induction.

This is also true for chief rival carmaker BMW. Mercedes-Benz has already come out with the DiesOtto powerplant, which in prototype form can already manage a fuel economy of 39mpg in the large S-Class saloon and will be released in the latest S400 and ML450 hybrid cars. In another report, it is suggested that Mercedes-Benz is planning a more radical move which consists of hybrid options for all its model lineup by 2012, with some models coming with three-cylinder powerplants, which is lighter and more fuel efficient than the four-pot units.

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Mercedes-Benz going for three-cylinder engines

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