Mercedes-Benz in talks to use BMW engines for future plug-in hybrid, range-extender EV models – report

Mercedes-Benz in talks to use BMW engines for future plug-in hybrid, range-extender EV models – report

Mercedes-Benz is reportedly in advanced talks with compatriot and rival manufacturer, BMW for the latter to supply four-cylinder petrol engines to the Stuttgart-based brand, German outlet Manager Magazin has reported.

According to Autocar, a source within Mercedes-Benz has said that high-level planning and negotiations have begun for a range of its next-generation petrol powered models to use BMW-supplied engines. The agreement between BMW and Mercedes-Benz is being drawn up as a “strategic step to cut development costs,” according to the British publication.

The new 1.5 litre turbocharged four-cylinder petrol engine that features in the latest CLA, codenamed M252, is developed in-house by Mercedes-Benz in Germany but is produced in China by Horse Powertrain, a joint venture between Geely and Renault.

Mercedes-Benz in talks to use BMW engines for future plug-in hybrid, range-extender EV models – report

BMW B48 2.0 litre turbocharged inline-four cylinder petrol engine

The consideration of rival equipment is for compatibility reasons, Autocar cited Mercedes-Benz insiders as saying. While the M252 is suited for mild-hybrid electrification where it is paired with an eight-speed dual-clutch automatic transmission that houses an electric motor, it has not been engineered for plug-in hybrid or range-extender EV applications, which is where BMW could potentially come in.

This BMW unit is rumoured to be the B48 2.0 litre turbocharged inline-four, which is widely used in the current BMW and MINI model line-ups. The BMW B48 engine that is manufactured by Steyr in Austria is said to offer a wider scope of application compared to the Mercedes-Benz M252 as the BMW unit is packaged to work with longitudinal and transverse layouts, Autocar wrote.

Should the rumoured arrangement proceed, this will be the first time that the two rival German brands would share an engine. The potential partnership could also extend to production hubs globally for the two manufacturers, and a shared engine production plant in the United States could also help the brands get around tariffs for products imported into the US.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • Embun Mambang on Aug 22, 2025 at 5:39 pm

    Good decision to choose the engine maker of best WWII fighter plane.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ketawar on Aug 22, 2025 at 6:44 pm

    German’s Next big thing

    Audi models from the A3/Q3 up to the Q7 use engines that are also found in their Volkswagen counterparts.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Sabri on Aug 22, 2025 at 7:00 pm

    give up la germany china is too far ahead

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required