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The folks over at AutoCar have recently spotted the S400 Hybrid testing in Germany, showing that development is well on schedule for a 2009 market launch. This will make Mercedes the first auto maker to bring a hybrid car that uses lithium ion batteries to the roads, putting it a well ahead of Toyota and GM who plan to have a their lithium-ion powered cars on the market in late 2010.

The Mercedes-Benz S400 Hybrid’s 279 horsepower V6 engine will be mated with a 20 horsepower electric engine that will allow for an average fuel-economy of 27mpg. That puts the S400 hybrid well ahead of the Lexus LS hybrid which gives an estimated fuel-economy of...

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Mercedes S400 well on its way to take on Lexus LS hybrid

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