Mercedes To Use BMW Engines? Could Next-Gen AMG’s Be Powered By A Rival Brand? News24 –

Mercedes-Benz is in the advanced stages of correspondence with its direct German rival BMW for an engine-sharing agreement, under which BMW will pitch in its 2.0-litre B48 four-cylinder petrol engine to be used in a range of upcoming Mercedes SUVs and cars.

Recent reports from Auto Car UK have revealed that the move comes as Mercedes has been reworking its internal combustion engine (ICE) plans, amid a slower adoption rate than expected.

The partnership is being hailed as a cost-cutting and compliance strategy, giving Mercedes easy access to a Euro 7-ready powertrain while enabling more plug-in hybrid (PHEV) options without heavy in-house investment.

Mercedes had recently showcased its new 1.5-litre M252 four-cylinder engine in the latest-gen CLA lineup. The engine is produced in China and is better suited for mild-hybrid use, but not designed for PHEV or range-extender applications. The BMW B48 engine, on the other hand, is engineered for both transverse and longitudinal layouts, offering far greater flexibility and hence can be used in a bunch of different layouts.

Production of the engine would likely be handled at BMW’s Steyr plant in Austria, with discussions also exploring a possible shared facility in the US to avoid rising tariffs.

If agreed, this would represent the first-ever engine-sharing deal between BMW and Mercedes, two of Germany’s fiercest luxury rivals – and could further pave the way for gearbox collaboration in the future.