Mercedes Reverses Course: V8 Returns for CLE63, G-Class Stays

Mercedes-Benz is scrapping its controversial four-cylinder AMG strategy and bringing back the V8 engine for the upcoming CLE63, a reversal CEO Ola Källenius attributed to misjudging buyer demand. The German automaker also confirmed it is developing a next-generation G-Class designed to retain the boxy SUV’s core identity rather than undergo a radical redesign.

The decisions emerged during a recent media roundtable attended by Road and Track and other outlets, where executives confronted the commercial fallout from downsizing some of their most recognizable performance models.

Källenius defended the engineering behind the four-cylinder hybrid powertrain introduced in the C63 but conceded the company alienated its traditional buyers. “What we perhaps underestimated at the time was the good old V-8 crowd is a pretty good crowd. So you did not get the whole tribe with you,” he said, according to the outlet.

Stefan Weckbach, who leads Mercedes-AMG and oversees the G-Class and Maybach divisions, said the company will return to eight cylinders for the incoming CLE63. “We learn from the reaction of our customers, so we go back to what our customers love: the V-8 AMGs,” Weckbach said. He confirmed the new model is scheduled to launch next year.

The retreat marks a sharp pivot from a strategy Mercedes pursued aggressively after debuting the 2.0-liter turbocharged plug-in hybrid in the C63 S E Performance for the 2023 model year. That powertrain produced over 670 horsepower on paper, surpassing the output of the outgoing 4.0-liter twin-turbo V8 it replaced. Dealers reported sluggish sales almost immediately. Buyers accustomed to the acoustic signature and linear torque delivery of larger displacement engines rejected the smaller motor, despite its superior peak numbers.

Executives applied that same lesson to the G-Class, which has generated outsized profits for the brand since a comprehensive overhaul in 2018 ended nearly four decades of minimal structural changes. The vehicle remains one of Mercedes’ highest-margin products globally.

“For the G-Class, we need to make sure that it’s going to be transferred to the future, but not losing its soul. And this is a big challenge. We’re working currently on the next-generation, and we will make sure that it stays a G-Class,” Weckbach said.

Company leaders told reporters they intend to prioritize safety, quality, ride and drive, and longevity across the broader lineup, emphasizing feedback from existing owners over chasing new demographics.

When asked whether the brand would continue offering its flagship V12 engine — currently restricted to Maybach variants like the S680 and the limited-run SL680 Monogram Series — Källenius offered no specifics. He told reporters to “watch this space.”