Mercedes Might Buy Engines From Its Biggest Rival, BMW

In a strange twist, we might soon see BMW engines powering Mercedes-Benz cars. According to a rumor first reported by German publication Manager Magazin, the tri-star brand is in talks with BMW to purchase four-cylinder motors for its lineup starting in 2027.

The engine—likely to be a derivative of the turbocharged 2.0-liter B48 used in virtually every current BMW model—would fill a gap in the Mercedes lineup as a PHEV motor or range extender, according to Autocar. The B48, manufactured in Steyr, Austria, also offers more flexibility, as it’s designed to be used in longitudinal and transverse layouts, making it suitable for a wide range of compact and mid-size Mercedes models. 

We’ve reached out to Mercedes and BMW for comment. We’ll be sure to update this article when either responds.

Those paying close attention to the business of engines will know Mercedes just introduced a new four-cylinder, the M252. It’s currently offered in the CLA and paired with a mild-hybrid system. So why not just use that?

Well, that engine reportedly isn’t well-suited to work with plug-in hybrid tech, and it’s built in China, meaning potentially high tariff costs for US-bound models. This rumored partnership could also mean a shared engine plant in the US, according to Autocar, side-stepping tariffs completely.

The rumor comes as Mercedes continues to rejigger its lineup amidst slowing EV uptake globally. The company promised in 2021 that it would be going EV-only by 2030, before walking back that promise in 2024. In an interview last year, CEO Ola Källenius said the company’s internal combustion technology will now “last well into the 2030s.”

Supplying engines to other manufacturers is commonplace for BMW. The company already builds engines for Morgan, Ineos, and Range Rover. In the case of the Toyota Supra, it supplies the engine and many other parts, and collaborates on manufacturing. But if this deal with Mercedes emerges as true, it would be the first time two of Germany’s luxury car giants shared powertrains on such a scale.