The down-sized and boosted engines are only one aspect of the drive to get fleet average CO2 emissions down to 138 g/km by 2012. In 2009 Mercedes Benz will also launch a version of the luxury S-Class sedan with a mild hybrid system and an M-Class SUV with the Two-Mode hybrid system. In 2010, an electrically driven Smart ForTwo with a lithium ion battery will also go into limited production. By mid-decade, the automakers wants all of its vehicles to be capable of operating on either biofuels, hydrogen or electricity.
[Source: Automotive News – Sub. Req.]