Mercedes-Benz and BMW are in talks over a deal that would see Mercedes use BMW engines, according to Autocar.
BMW's turbocharged 2.0-liter four-cylinder would potentially find its way into several Mercedes models, from the small CLA-class sedan and GLA-class SUV to larger models like the E-class.
The companies could also work together on a shared engine plant in the U.S., the report states.
Mercedes-Benz and BMW have been rivals for roughly 100 years, but a new report suggests that the two German automakers might soon work together. According to Autocar, Mercedes-Benz is considering a plan that would see it utilize four-cylinder BMW engines in several models.
The talks between Mercedes and BMW are reportedly at an advanced stage, with Autocar's source at Mercedes stating that if the deal goes ahead, an announcement will come before the end of 2025. Car and Driver reached out to Mercedes-Benz and BMW, with both automakers declining to comment.
According to the report, the BMW engines could be featured in a wide range of models, from small SUVs like the GLA-class and GLB-class to sedans like the CLA-class and C-class. Even larger SUVs and sedans, such as the E-class and GLC-class, are under consideration, as is the upcoming "baby G-wagen" SUV.
The benefit for Mercedes is access to an engine that will be compliant with the upcoming Euro 7 emissions rules and is also well-suited to use in plug-in hybrids, while avoiding spending money on development. While Mercedes recently launched a new turbocharged 1.5-liter four-cylinder in the CLA-class hybrid, it is reportedly not currently engineered for use in traditional plug-in hybrids or as a range-extender.
The BMW engine Mercedes would employ is the B48, a turbocharged 2.0-liter four-cylinder, currently found across most of the BMW and Mini lineups. The report states that the engine used by Mercedes would likely be built in Steyr, Austria, but the two companies could also team up for a shared engine plant in the U.S.
The move comes after Mercedes-Benz's push into the EV space hasn't exactly panned out as expected, with all six of the automaker's electric passenger models in the U.S. experiencing a drastic decline in sales in 2024. In fact, Mercedes is set to soon temporarily close order banks for the EQE sedan, EQE SUV, EQS sedan, and EQS SUV in the U.S.
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