Mercedes is currently testing electric vehicles, which will debut under the brand's EQ line. Fully electric vehicles from Mercedes are still quite a long way from production, but the German automaker is close to rolling out its third-generation plug-in hybrid technology under the EQ name. Mercedes currently builds plug-in hybrid versions of the C-Class sedan, and GLC and GLE SUVs. However, Autocar reports that all three of these PHEV models will be pulled to make way for the next-generation of Mercedes hybrids.

The EQ system will be mated with Mercedes' nine-speed automatic transmission, whereas the previous plug-in models utilized the old seven-speed unit. Mercedes says the power from the hybrid system has been upgraded, so it now contributes 121 horsepower and 325 lb-ft of torque alongside the combustion engine's power. The improvements don't stop there. Top speed in electric mode has been raised to 87 mph (up from 81 mph in the second-generation). In addition, the electric range is up to 31 miles compared to only 21 miles in the second-generation.

Mercedes has specified that the first model to benefit from this new technology will be the S-Class called the S560e. After the S-Class, Mercedes will release diesel and gas PHEV versions of the E-Class (for Europe of course). We'll have to wait to hear more details about Mercedes' PHEV plans in the US market, but they will likely be similar to the plans for Europe - minus the diesel engines of course.

Check out all information about Mercedes-Benz hybrid SUV.