Mercedes Develops New V8 Combustion Engine as EV Sales Stall

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Mercedes-Benz Group AG is developing a new combustion engine, becoming the latest automaker to slow its electric-car push in response to sluggish sales.

The German company’s AMG performance division is working on a next-generation V8, changing course on a previous decision to stop developing engines running on fossil fuels. It will be accompanied by a small battery and electric motor for additional power.