Your Upcoming Mercedes May Feature a BMW Engine | Carscoops

      Rival automotive companies are reportedly in discussions regarding an engine agreement that could see BMW engines utilized in Mercedes vehicles by 2027.

      Mercedes may incorporate BMW’s four-cylinder engines into its forthcoming hybrid and plug-in hybrid models, which would enhance BMW’s production capabilities while decreasing costs for Mercedes-Benz.

      A formal announcement from both companies is anticipated before the end of 2025.

      For years, Mercedes and BMW have been engaged in a highly competitive rivalry in the automotive sector, yet even firms of this stature occasionally find mutual interests. Reports suggest that Mercedes is considering a plan to obtain four-cylinder engines from BMW, aiming to reduce development expenses for upcoming combustion models as it gradually shifts towards a full electric vehicle lineup.

      This information initially emerged from the German publication Manager Magazin, mentioning that the first Mercedes vehicles featuring BMW engines might debut as soon as 2027. Additionally, discussions have included the sharing of transmissions and potentially entire electrified powertrains, indicating a possible collaboration extending beyond just an engine agreement.

      Collaborative Benefits

      This partnership would enable Mercedes to significantly lower research and development costs for future four-cylinder models, allowing them to concentrate on developing six-cylinder and eight-cylinder engines. Meanwhile, BMW would benefit from increased revenue and could utilize excess production capacity at its Steyr plant in Austria.

      As reported by Autocar, a source within Mercedes indicated that the talks are at a “high level of planning and negotiations,” with a public announcement expected before the close of 2025.

      Currently, the new CLA employs a mild-hybrid 1.5-liter turbo engine developed by Mercedes and manufactured by Geely.

      Rationale for Cooperating with BMW

      Mercedes already has an engine supply arrangement with Chinese manufacturer Geely, which produces a 1.5-liter four-cylinder turbo engine (M252) utilized in the mild-hybrid CLA. However, partnering with a European manufacturer like BMW would be more advantageous for markets such as North America and could better accommodate Mercedes’ expanding model lineup.

      Among the engines being considered is BMW’s B48 turbocharged 2.0-liter engine, already used in numerous BMW and Mini models. Its adaptability for both longitudinal and transverse layouts makes it suitable for plug-in hybrid configurations and could potentially serve as a range-extender engine in some situations.

      Should the collaboration proceed, the two firms might eventually broaden joint production facilities beyond Europe. Establishing a powertrain plant in the United States has been proposed, which would help the brands avoid tariffs and share manufacturing expenses in a vital market.

      Mercedes is not the only company reassessing its all-electric strategy. A slower-than-anticipated growth in electric vehicle demand has led various automakers to adopt a more adaptable approach, a shift that Mercedes has publicly recognized. CEO Ola Källenius recently referred to it as a “course correction,” affirming that electrified combustion engines will continue to be a part of their lineup for a longer duration than initially planned.