If agreed, this would represent the first-ever engine-sharing deal between BMW and Mercedes
22 Aug 2025 | 16012 Views | By Akbar Merchant
Mercedes-Benz is in advanced talks with its direct German rival BMW for an engine sharing agreement where BMW will supply its 2.0-litre B48 four-cylinder petrol engine to be used in a large number of future Mercedes SUVs and cars.
According to reports from our sister publication Autocar UK and
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Mercedes-Benz is in advanced talks with its direct German rival BMW for an engine sharing agreement where BMW will supply its 2.0-litre B48 four-cylinder petrol engine to be used in a large number of future Mercedes SUVs and cars.
According to reports from our sister publication Autocar UK and Manager Magazin, the move comes as Mercedes starts to rework its internal combustion engine (ICE) plans amid slower-than-expected EV adoption.
If finalized, Mercedes models like the recently unveiled CLA, the GLA and GLB SUVs, the next-gen C-Class, the popular E-Class, the GLC SUV and the upcoming ‘Little G’SUV that will be inspired by the G-Class will see engines sourced from BMW.
The partnership is seen as a cost-cutting and compliance strategy, giving Mercedes access to a Euro 7-ready powertrain while enabling more plug-in hybrid (PHEV) options without heavy in-house investment.
Mercedes has recently introduced its new 1.5-litre M252 four-cylinder engine in the latest-gen CLA line-up. This engine is produced in China and is better suited to mild-hybrid use and not designed for PHEV or range-extender applications. The BMW B48 engine is engineered for both transverse and longitudinal layouts, offering greater flexibility.
Production of the engines 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 even pave the way for gearbox collaboration in the future.