Report: Mercedes-Benz In Talks To Use BMW Engines

Mercedes-Benz is in advanced talks to potentially use BMW’s four-cylinder petrol engines in a wide range of future cars as part of a radical rethink of its strategy prompted by slower-than-expected adoption of its electric vehicles.

A source from Mercedes told Autocar that the two companies are already at a high level of planning and negotiations, and an announcement on whether this will happen is expected before the end of the year.

The potential collaboration—first revealed by Germany’s Manager magazine—would see BMW provide a new generation of petrol engines for use in Mercedes models, from the CLA through the GLA, GLB, C-Class, E-Class, and GLC to the upcoming ‘Little G.’

The deal between the rival companies was framed as a “strategic step towards reducing development costs.” For Mercedes, it would ensure a supply of engines that comply with Euro 7 standards—which is crucial for the continued production of internal combustion models—while helping it to expand its plug-in hybrid offering without further major investments in four-cylinder engine development.

The move comes as Mercedes gradually introduces its new 1.5 liter four-cylinder M252 engine, developed in-house in Germany but manufactured in China by Horse, a joint venture between Geely and Renault.

Already offered in the new CLA, the M252 engine is offered with three power outputs—136hp, 163 hp, and 190 hp—and is mated to an eight-speed dual-clutch automatic transmission housing a 27 hp electric motor. However, insiders note that while the M252 is well-suited to mild hybrid applications, it is not currently designed for PHEV or range-extender use—a void that BMW’s engine could potentially fill.

The mentioned engine is said to be a 2.0-liter derivative of the four-cylinder B48 engine. Likely to be built at the Steyr factory in Austria, the B48 is said to offer greater capability than the M252, as it is built for both longitudinal and transverse layouts, giving Mercedes more flexibility with its compact and mid-size models.

The proposed partnership could also extend to global manufacturing hubs, including a potential joint engine plant in the US to avoid rising import tariffs.

If an agreement is reached, it would be a historic first: two German luxury car manufacturers sharing engines and potentially even transmissions in the long term, Autocar concludes.

• Also See: Because Of Import Taxes, Mercedes-Benz Anticipates Decreased Profits