Mercedes and BMW Discuss Engine Collaboration

According to foreign media reports, Mercedes-Benz is currently in deep discussions with BMW to use BMW’s four-cylinder gasoline engines in a wider range of models in the future. This move stems from Mercedes-Benz's electric vehicle sales falling short of expectations, prompting the group to completely overhaul its internal combustion engine strategy.

A source from Mercedes-Benz revealed to Autocar magazine that Mercedes-Benz and BMW are currently in the advanced stages of planning and negotiations, and it is expected that a decision will be announced by the end of the year regarding whether to proceed with this collaboration.

Image source: Mercedes-Benz

If both parties can reach a cooperation agreement, BMW will provide Mercedes-Benz with a new generation of gasoline engines, suitable for models including the Mercedes-Benz CLA, GLA, GLB, C-Class, E-Class, GLC, as well as the soon-to-be-released smaller-sized "G-Class" models.

The cooperation between these two competing companies is regarded as a "strategic move to cut R&D costs." For Mercedes-Benz, this will ensure the supply of engines that comply with the Euro 7 emission standards, which is crucial for the continued production of its internal combustion engine models. At the same time, it will help the company expand its lineup of plug-in hybrid models and avoid further investment in the development of four-cylinder engines.

At the same time, Mercedes-Benz is gradually launching its new 1.5-liter turbocharged four-cylinder M252 engine, which was independently developed by its German headquarters and manufactured in China by HORSE Powertrain, a joint venture between Geely and Renault.

The M252 engine is equipped in the new CLA model, offering three power outputs of 136 horsepower, 163 horsepower, and 190 horsepower, paired with an eight-speed dual-clutch automatic transmission integrated with a 27-horsepower electric motor.

However, insiders point out that although the M252 engine is very suitable for mild hybrid applications, its current design does not consider use in plug-in hybrid vehicles or range-extended electric vehicles, and the engine provided by BMW may fill this gap.

It is reported that the engine provided by BMW might be a 2.0-liter turbocharged derivative of the four-cylinder B48 engine, which is currently used in almost all BMW and Mini models.

The B48 engine is expected to be produced at a factory in Steyr, Austria. It is reportedly more versatile than the M252, being suitable for both longitudinal and transverse layouts, which gives Mercedes greater flexibility in offering it on compact and mid-size vehicles.

The proposed cooperation between Mercedes-Benz and BMW may also extend to global production centers, including the possibility of jointly building an engine factory in the United States to circumvent rising import tariffs.

If this cooperation can be achieved, it will mark a historic breakthrough for the German automotive industry: for the first time, Germany's two major luxury car manufacturers will share engine technology, and in the long term, they may even share transmissions.