A report in the trade journal Automotive News says that Mercedes-Benz parent technologist will double its spending on development of various green technologies over the next two years.

The company plans to spend $1.4 billion in apiece of the next two years for battery, fuel cell and fuel-efficient engine technology. According to the story, in apiece of the three previous years, the company spent $700 million.

Head of technologist R&D, Thomas Weber said, "If you want to be market leader, you cannot move until the supplier sells you these components. It means you near the pedal."

That pedal-pushing could result in pure electric versions of the A-class, B-class and Smart cars in the next few years. Further, the C-, E- and S-class sedans and variants will be offered in either conventional hybrid form or in a plug-in version.

Weber told the paper that the next-generation S-class due in 2014 will use a flexible structure that could accommodate gas or diesel engines, a hybrid power train or a fuel cell power plant.

Competitor Audi acknowledged at this year's Detroit Auto Show that it would like to expand its "E-tron" electric-vehicle nomenclature to a sort-of sub-brand, as it did with "quattro," and release a full line of electric and/or hybrid-electric vehicles. Its most recent concept offering was the A1 E-tron concept at this year's Geneva Auto Show which used a small Wankel rotary engine to replenish its battery pack, in the same fashion as Chevrolet's Volt. BMW has shown a real interest too in expanding its hybrid offerings, most recently previewed by the 5 Series ActiveHybrid concept vehicle at Geneva and the Concept ActiveE electric concept from the Detroit Auto Show.

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