Mercedes will stop investing in new or next-gen plug-in technology, preferring instead to focus on simpler, more cost-effective EVs.

Speaking to Germany’s Handelsblatt at IAA Munich, Markus Schäfer, Mercedes’ head of development, said that the plug-in hybrid’s days at Mercedes are numbered. He argued that the complexity of having two drive units in one vehicle is an inherent flaw.

“In the end, however, it is also a cost burden for the vehicle,” said Schäfer. That doesn’t mean, however, that we’ll never see another new Mercedes PHEV.

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“The investments have been made, so we are using them,” Schäfer said. Indeed the much anticipated AMG Project One and the recently unveiled GT 63 E Performance would suggest that there’s some life left in plug-in hybrids.

The latter pairs a 4.0-liter twin-turbocharged V8 engine with an electric motor at the rear axle. They combine to make 831 hp and 1,023 lb-ft (1,400 Nm) of torque, which is enough to get the sports sedan to 62 mph (100 km/h) in just 2.9 seconds and all the way up to a top speed of 196 mph (316 km/h) while returning 27 mpg (8.7 lt/100 km).

However, as it funnels money into its battery technology and as a green rush and upcoming legislation spurs automakers to invest heavily in pure-electric drivetrains, the fact that Mercedes is ending its development of plug-in hybrids, which were mostly seen as a transitionary technology anyway, makes sense.