Engine Sharing Agreement: Mercedes and BMW to Collaborate

Mercedes-Benz and BMW, two of the leading automotive companies, are engaged in talks concerning an engine partnership. This potential agreement, if concluded, would represent a substantial collaboration within the German automotive market. According to sources, Mercedes is considering using BMW’s renowned B48 four-cylinder turbocharged engine in its upcoming petrol and plug-in hybrid cars. This engine is already implemented in a range of BMW and Mini vehicles. Its design allows for platform flexibility, making it compatible with vehicles like the Mercedes CLA, GLA, GLB, C-Class, E-Class, and the upcoming Little G SUV. Mercedes currently has a 1.5-liter M252 engine, which is suitable for mild-hybrid technology, but has limitations when used in plug-in hybrid or range-extender configurations. The B48 engine will provide a solution to this problem. Engine production might take place at BMW’s Steyr plant in Austria. Both companies are discussing the possibility of a joint factory in the United States to avoid increasing import duties. Mercedes would gain from this deal by having access to a certified, Euro-7 compliant engine, cutting down on R&D expenses, and accelerating the growth of its plug-in hybrid lineup. BMW would also benefit, capitalizing on its production capacity and enhancing its factory’s efficiency by producing more engines.