We’ve been hearing from industry executives and analysts alike that consolidation and partnerships between legacy brands are the only way forward to keep up with changing global regulations and the ascent of China’s auto sector. If you had any doubt, consider this report out of Germany that Mercedes-Benz is in negotiations with BMW to adopt its four-cylinder engines across a range of models.
As reported first by Manager Magazin and corroborated by Autocar citing a Mercedes source, the three-pointed-star brand is in “advanced talks” with its foremost rival to incorporate BMW mills in most of its smaller models. That would include the CLA, GLA, GLB, C-Class, and upcoming “Little G” off-roader, up to the E-Class. Autocar says that the move was described to it as a “strategic step to cut development costs.”
Now, if you’re closely following Mercedes’ engine development as of late, you may already know that the company recently developed a four-cylinder of its own—a new 1.5-liter product that can be found in the new CLA, and will be used in a mild-hybrid capacity. However, that engine supposedly isn’t engineered for plug-in hybrid use, or use as a gas range extender for EVs.
A turbocharged derivative of BMW’s two-liter B48 could fit that role well, the rationale goes. And since it’s able to be fitted in longitudinal as well as transverse layouts, it’s a more flexible choice for Mercedes’ smaller cars.
As for what this would mean on our side of the pond, Autocar’s report raises the potential construction of a “shared engine plant in the U.S. to sidestep rising import tariffs,” as a result of this partnership. That’s a wild thing to imagine—a joint BMW and Mercedes engine plant anywhere in the world, let alone North America—but, you know what they say about desperate times. And, many automakers like Mercedes are finding themselves in a pretty desperate one, expecting to spin down internal-combustion engine development five years ago, only to find that the all-EV world hasn’t quite arrived yet. On this side of the planet, anyway.
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