Could BMW Engines Power Future Mercedes-Benz Models?

A potential engine-sharing deal is under discussion between Mercedes-Benz and BMW. The agreement would allow Mercedes to use BMW’s 2.0-liter B48 four-cylinder petrol engine in upcoming Mercedes SUVs and other vehicles. The discussions come as Mercedes refines its internal combustion engine (ICE) strategy, considering the evolving landscape of vehicle technology adoption. This collaboration is considered a strategic move to control costs and meet stringent emission standards, giving Mercedes access to a Euro 7-ready powertrain and providing enhanced plug-in hybrid (PHEV) vehicle options without significant internal development. Mercedes recently launched a new 1.5-liter M252 four-cylinder engine in its CLA models, best suited for mild-hybrid systems, but not designed for PHEVs or range-extender applications. The BMW B48 engine offers more flexibility, with compatibility across various vehicle layouts. Engine production is expected to occur at BMW’s Steyr plant in Austria, with the possibility of a joint US facility being explored to avoid tariffs. This deal would be unprecedented, marking the first engine-sharing agreement between the two German luxury car manufacturers and could foster additional collaborations in the future, including potential gearbox partnerships.