It's not just Mercedes downsizing with the S-Class S250 CDI, Volkswagen's luxury arm, Audi, is destined to release a four-cylinder hybrid version of its range topping A8 in 2012.
The hybrid luxury sedan is yet another sign of luxury car makers succumbing to increasing pressure from consumers and governments to create more fuel efficient variants. Nonetheless Audi believes that smaller engines for cars such as the A8 need to provide sufficient performance.
Before the launch of the Audi A8 hybrid, the company will also introduce a front-wheel-drive variant powered by a six-cylinder diesel engine in 2011.
The introduction of the new small-engine A8 and Mercedes-Benz S-Class will help consumers in countries slugged with taxes based on carbon-dioxide emissions.
Read: Audi A8 Review.