Mercedes-Benz is reportedly considering a landmark move that could reshape the German luxury automotive industry. According to reports from Autocar UK, the company is in advanced negotiations with BMW to source a 2.0-litre four-cylinder petrol engine for a wide range of upcoming petrol-hybrid models.
If finalized, this would be the first time in history that two of Germany’s fiercest automotive rivals collaborate on sharing a core powertrain, highlighting the shifting dynamics in the global car market as manufacturers adapt to evolving emissions regulations and slower-than-expected adoption of electric vehicles (EVs).
Why Mercedes is Turning to BMW for Engines
Mercedes already has a 1.5-litre M252 petrol engine, developed in partnership with Geely and Renault via HORSE. While this engine works well for mild-hybrid systems, insiders reveal that it cannot be adapted for plug-in hybrid (PHEV) or range-extender applications, which are key for Mercedes’ future lineup.
Key limitations of the M252:
- Power output limited to 138 hp, 165 hp, and 193 hp.
- Integrated with a 27 hp electric motor in the transmission.
- Efficient for mild hybridisation but not engineered for full plug-in systems.
With regulatory deadlines looming, particularly the Euro 7 emission norms, Mercedes urgently needs a versatile, compliant, and scalable 4-cylinder engine. The BMW-supplied B48 unit perfectly fits this requirement.
Quick Summary: Mercedes-BMW Engine Partnership
Feature |
Details |
|---|---|
Engine Likely to be Used |
BMW 2.0-litre, 4-cylinder B48 petrol engine |
Applications |
CLA, GLA, GLB, C-Class, E-Class, ‘Little G’, and other hybrids |
Technology Support |
Compatible with PHEV (plug-in hybrid) and range-extender applications |
Current Mercedes Small Engine |
1.5-litre M252 (mild hybrid only, not PHEV ready) |
Key Advantage |
Euro 7 compliance, hybrid integration, reduced R&D costs |
Possible Production |
Shared facilities, including a plant in the US to bypass tariffs |
Official Confirmation |
Expected late 2025 |
Official Source |
About the BMW B48 Engine
The BMW B48 2.0-litre four-cylinder turbo petrol engine is already used across multiple BMW and MINI models. It is:
- Engineered for both longitudinal and transverse configurations, giving flexibility across platforms.
- Compatible with PHEV systems, offering more powerful hybrid applications.
- Known for strong reliability, refinement, and compliance with upcoming Euro 7 standards.
- Available in a wide range of outputs (from 154 hp to 302 hp, depending on model).
This versatility makes it an attractive option for Mercedes, which could use the engine in everything from compact cars (CLA, GLA) to midsize sedans (C-Class, E-Class) and even SUVs like the Little G (baby G-Class).
Strategic Benefits for Mercedes
- Cost Savings – Developing a new 4-cylinder PHEV-capable engine in-house would require billions in investment. Partnering with BMW cuts costs significantly.
- Euro 7 Compliance – The B48 engine is already engineered to meet Europe’s toughest emission norms, ensuring Mercedes can continue selling ICE-based models.
- Product Flexibility – Its ability to work in both small and midsize cars gives Mercedes more scope than the limited M252.
- Market Adaptability – With EV adoption slower than expected, Mercedes needs strong petrol-hybrid models to stay competitive.
- Potential US Production – A joint engine plant in the US could help both brands avoid tariffs while lowering logistics costs.
Wider Implications of the Partnership
This collaboration signals a shift in the German luxury car landscape:
- Historic Rivalry Softens – Mercedes and BMW have traditionally competed fiercely, but growing economic and regulatory pressures are forcing collaboration.
- Platform Sharing Potential – Industry insiders suggest that gearbox sharing could be the next step in cooperation.
- Impact on Audi & Others – Rivals like Audi (VW Group) may face pressure to seek similar collaborations to remain competitive.
Concerns and Criticisms
While the move is practical, there are potential drawbacks:
- Brand Identity – Purists may argue that a Mercedes powered by a BMW engine dilutes the unique character of both brands.
- Dependence Risk – Mercedes could become reliant on BMW for hybrid powertrain technology.
- Integration Challenges – Engineering a rival’s engine into Mercedes platforms may pose technical and logistical hurdles.
Expected Timeline
- 2025 (Late) – Official announcement expected.
- 2026–2027 – First Mercedes models with BMW engines likely to launch.
- Future – Possible expansion into global production and additional component-sharing deals.
FAQs: Frequently Asked Questions
1. Which engine is Mercedes expected to use from BMW?
The 2.0-litre four-cylinder B48 petrol engine, already used in BMW and MINI cars.
2. Which Mercedes models will feature the BMW engine?
Likely the CLA, GLA, GLB, C-Class, E-Class, and Little G-Class.
3. Why can’t Mercedes use its own 1.5-litre engine?
The M252 engine is suited for mild-hybrid systems only and cannot support full plug-in hybrid setups.
4. What is the main advantage of the BMW engine for Mercedes?
It provides Euro 7 compliance, hybrid adaptability, and reduces development costs.
5. When will the first Mercedes with a BMW engine launch?
The first models are expected between 2026 and 2027 after an official 2025 announcement.
Conclusion
The proposed Mercedes-BMW engine partnership is a bold but necessary step in today’s auto industry. As Mercedes rethinks its ICE strategy amid slower EV uptake, the BMW-sourced 2.0-litre B48 engine provides a ready-made solution for plug-in hybrids and range extenders.
This collaboration would not only save costs but also keep Mercedes competitive in the global market while meeting stricter emissions regulations. However, it raises questions about brand identity and long-term independence. For now, the move reflects the growing reality: collaboration, not rivalry, may define the future of German luxury carmakers.
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