BMW to Supply Engines to Mercedes-Benz: A Historic Partnership?

Reports suggest Mercedes-Benz is negotiating with BMW for an engine-sharing deal that could see BMW’s 2.0-liter B48 four-cylinder petrol engine incorporated into future Mercedes SUVs and cars. This strategy arises from Mercedes’s revised plans for its internal combustion engine (ICE) program, influenced by the rate of technological adoption. The collaboration is seen as a means to reduce costs and ensure compliance with upcoming Euro 7 emission standards, providing Mercedes with access to advanced powertrain technology and enhancing plug-in hybrid (PHEV) offerings. Mercedes recently launched its 1.5-liter M252 four-cylinder engine in the CLA, designed for mild-hybrid systems rather than PHEVs or range extenders. In contrast, the BMW B48 engine is engineered for versatility, accommodating both transverse and longitudinal engine layouts. Production of the shared engine could occur at BMW’s Steyr plant in Austria, with the potential of a joint facility in the US under consideration to address tariff concerns. The agreement, if finalized, would be the first of its kind between BMW and Mercedes, two major German luxury automakers, potentially setting the stage for further cooperation in areas like gearbox technology.