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Mercedes-Benz, whose parent company is already considering a technology and stock deal with Renault-Nissan to meet European emissions standards, is also under the gun on upcoming fuel economy requirements.

One idea is to make all flagship S-Class models, including the high-performance AMG models, hybrid-only, beginning with the next generation which hits Europe in 2013 and the U.S. in 2014.

But Automotive News says Mercedes-Benz dealers in the U.S. aren't happy with that idea at all.