Mercedes announced that by 2010 all the models will be powered by turbocharged engines: "All our vehicles will have turbocharged engines in series production by the end of 2010 at the latest," Thomas Weber, Daimler board member responsible for research and development, told Automotive News Europe at a press event.

The decision was made in order to reduce emissions and reduce fuel consumption, and turbocharged is the cheapest way to achieve them. With the addition of a turbocharger, Daimler will be able to install smaller, lighter and more fuel-efficient engines without sacrificing performance.

Under current proposals, the European Commission will ask the German automaker to cut its average fleet emissions from 178 grams per kilometer to 138 g/km by 2012. The Commission will fine automakers that fail to meet the targets.

Improving the efficiency of its existing engines is the first part of Daimler's strategy to reduce CO2 emission levels across its fleet. Weber said the medium-term step would be to introduce more hybrid technology. The S class -- Mercedes' flagship sedan -- will be offered as a full hybrid vehicle starting in 2009.

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