Germany’s two automotive giants, Mercedes-Benz and BMW, may be on the verge of a surprising partnership. According to reports from the German press, starting in 2027, Mercedes could equip some of its models with BMW engines. If realized, this collaboration would mark the first time that the Mercedes star and BMW’s engineering meet under the same hood.
Why Would Mercedes Use BMW Engines?
It is reported that Mercedes is in talks with BMW regarding four-cylinder engines. Specifically, a variant of BMW’s 2.0-liter turbocharged B48 engine, widely used across its lineup, could find its way into future Mercedes models. Produced in Steyr, Austria, the engine is highly versatile, supporting both longitudinal and transverse installations, and compatible with PHEV (plug-in hybrid) and EREV (range-extender hybrid) systems. This adaptability could give Mercedes a competitive edge, particularly in the U.S. market.
Limitations of the Current Engine
Currently, Mercedes uses the M252 engine in the CLA, which works well with mild-hybrid setups but lacks compatibility with PHEV systems. Moreover, because the M252 is manufactured in China, Mercedes faces steep tariffs when exporting to the U.S. A deal with BMW could resolve both the technical shortcomings and trade-related challenges. Industry rumors even suggest the possibility of a joint engine plant in the United States.
Electric Plans Delayed
Mercedes initially announced in 2021 its intention to go fully electric by 2030. However, in 2024 this target was revised and postponed. CEO Ola Källenius confirmed that internal combustion engines will remain relevant well into the 2030s. As a result, the company is reinvesting in hybrid and combustion technologies, and sourcing engines from a rival fits within this broader strategic shift.
BMW’s Long History of Engine Supply
BMW is no stranger to engine supply agreements. The company has provided powertrains to Morgan, Ineos, and Range Rover, and is widely known for the Toyota Supra, which is heavily based on BMW components. Yet a potential deal with Mercedes would represent a historic first — two long-time German rivals uniting under one engineering solution, signaling a remarkable shift in the automotive industry.