BusinessWeek is reporting that Mercedes-Benz will start European sales of a hybird version of its luxury S-Class in June of 2009. The U.S. and China will start receiving theirs in September of 2009. While Klaus Maier, Sales and Marketing Director at Mercedes, didn’t reveal the price tag for the hybrid S-Class, he did mention the premium wil be less than 10,000 Euro or $14,000 compred to a non-hybrid S-Class.

The main innovation is the lithium-ion battery. Developed along with German components supplier Continental, the battery weighs less and takes up less space than batteries used by competing hybrids. Slightly larger than a conventional auto battery, it fits under the hood and does not reduce the amount of space in the rest of the car. The hybrid components including an electric motor that adds a modest 75 kg (165 lb.) to the total weight of the car.

Mercedes has outlined a strategy to start releasing a Hybrid model each yeah, starting in 2009 to achieve their 20% goal. A Hybrid-diesel is also in the works and will be available within years.