Mercedes-Benz is in discussions with BMW to source BMW engines for its upcoming lineup, as the automaker reevaluates its internal combustion engine strategy due to weaker-than-anticipated demand for EVs.
According to Autocar, citing Manager Magazin, BMW is expected to supply a new generation of petrol engines for a wide array of future Mercedes vehicles—including the CLA, GLA, GLB, C-Class, E-Class, GLC, and the forthcoming ‘Little G’ SUV. The collaboration would provide Mercedes with access to Euro 7-compliant powertrains, a key factor in sustaining its internal combustion engine lineup. It would also allow the brand to broaden its plug-in hybrid portfolio without committing to costly development of new four-cylinder engines.
The Autocar reports that the engine is likely a variant of BMW’s turbocharged 2.0-liter B48, which powers nearly all current BMW models. It would serve as a plug-in hybrid power unit or range extender in the Mercedes lineup. Built in Steyr, Austria, the B48 offers greater adaptability, as it is engineered for both longitudinal and transverse configurations, making it well-suited for a wide range of compact and mid-size vehicles.
The partnership would enable Mercedes to substantially cut research and development expenses for the upcoming four-cylinder models, allowing it to concentrate on refining its six- and eight-cylinder engines. BMW, meanwhile, would gain additional revenue and optimize unused production capacity at its Steyr plant.
The development follows Mercedes’ rollout of its newly engineered 1.5-liter turbocharged four-cylinder M252 engine, which was designed in Germany but manufactured in China by Horse, a joint venture between Geely and Renault.
Mercedes has a history of sourcing powertrains from other manufacturers, most recently collaborating with Nissan and Renault across various models. Nissan supplied engines for the GLE-Class SUV as well as the Sprinter and Metris vans sold in North America, while Renault provided diesel engines used in several Mercedes vehicles in other international markets.
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