Daimler plans to shift focus from combustion engines to electric

Company officials said its focus is on electrification, electric drives and battery development, German publication Auto Motor Sport reported. But the company is not phasing out its internal combustion engines entirely.

Daimler, which includes Mercedes Benz, practically invented the internal combustion engine more than 120 years ago. The company recently retooled its latest generation of engines for various car and SUV models.

"Daimler AG has not made any decision to opt out of the development of internal combustion engines," a company spokesperson told Wired.

The company will still develop components to improve existing engines. It is expected its latest gasoline engines will be in production for at least the next decade. The company does plan that half of its cars sold by 2030 will be electric or hybrids and all of them will be carbon neutral by 2039, Wired reported.

Elon Musk, who heads American electric automaker Tesla, praised Daimler’s direction on social media.

"Very meaningful action by the company that invented the internal combustion engine. People will remember this day," Musk wrote. "Respect."

The company replied:

“Here’s to a sustainable future.”