Mercedes-Benz is in advanced talks with BMW concerning an engine-sharing initiative, which could see BMW’s 2.0-liter B48 four-cylinder petrol engine powering upcoming Mercedes SUVs and cars. This development is a result of Mercedes adjusting its internal combustion engine (ICE) plans, prompted by shifts in technology adoption. The partnership is seen as a strategic move, enabling Mercedes to access a Euro 7-compliant engine and expand its plug-in hybrid (PHEV) vehicle range, thus reducing the need for extensive internal investments. Mercedes recently introduced a new 1.5-liter M252 four-cylinder engine in its CLA lineup, which is optimized for mild-hybrid applications but not for PHEVs or range extenders. The BMW B48 engine, on the other hand, is designed to fit different vehicle layouts, offering flexibility. If an agreement is reached, production of the shared engine will likely be based at BMW’s Steyr plant in Austria. There are also discussions about establishing a joint facility in the US to navigate potential tariffs. This deal could represent the first engine-sharing arrangement between BMW and Mercedes, two leading German luxury automotive manufacturers, and may open doors for further collaboration in the future, possibly including gearbox technology.
