Introduction
A recent report claimed that Mercedes-Benz might source BMW’s turbocharged 2.0-liter four-cylinder engines for a range of its vehicles, including the CLA-class, GLA-class, E-class, and more. However, Mercedes has officially denied these rumors, affirming its commitment to in-house engine development, particularly its new Family of Modular Engines (FAME) that comply with upcoming worldwide regulations.
The Rumor
According to a report by Autocar, Mercedes and BMW were in advanced talks for a historic engine-sharing deal. BMW’s B48 2.0-liter turbocharged four-cylinder, widely used across BMW and Mini models, was allegedly the candidate Mercedes intended to employ across multiple segments, from compact SUVs to sedans. The deal was said to aim at reducing development costs, ensuring emissions compliance (especially with Euro 7), and expanding Mercedes’s plug-in hybrid range.
Mercedes-Benz Response
At the 2025 IAA Mobility Show, Mercedes-Benz CTO Markus Schäfer firmly dismissed the rumors. He emphasized Mercedes’s development of its own modular engine family, which already meets stringent regulatory standards in Europe, China, and the U.S., instead of relying on competitor powertrains. Mercedes is committed to maintaining its engineering independence despite industry pressures and cost considerations.
Strategic Context
While the automotive industry often sees alliances formed for electrification or parts sharing, a powertrain agreement between two German luxury rivals on this scale would be unprecedented. Mercedes has been progressing with its in-house turbocharged engines, including the new 1.5-liter M252 used in mild hybrids, though these aren’t designed for plug-in hybrid applications, which has led to speculation about BMW’s four-cylinder taking that role.
What’s Next?
Though negotiations reportedly reached advanced planning stages, no official announcement has been made, and Mercedes has clearly stated it is developing compliant engines internally. Future discussions between the companies might still explore other areas of collaboration, but Mercedes’s current stance rules out adopting BMW’s four-cylinder engines in near-term production models.
Conclusion
Despite circulating reports of a Mercedes-Benz and BMW engine-sharing agreement, Mercedes insists it will continue developing its in-house engine lineup compliant with all future emissions standards without importing engines from BMW. The rivalry between these two automakers remains intact as Mercedes charts its path to electrification and efficiency on its own terms.
