Mercedes May Start Using Engines Sourced From BMW

Matt Posky
by Matt Posky

Mercedes-Benz is reportedly in negotiations about potentially using BMW-sourced motors on future models. The engine in question is said to be a four-cylinder unit that would go into a wide range of products.


Automakers borrowing powertrains from other manufacturers is hardly new. I’ve owned a couple of vintage Mopar products with the word Mitsubishi stamped on the motor. Pop the hood of your modern Toyota Supra or GR86 and you’ll likewise find something manufactured by BMW or Subaru.


Mercedes-Benz has likewise sourced units from Nissan and Renault in recent years, particularly for its SUVs and vans. China’s Geely is also starting to provide the German brand with 2.0-liter inline-four engines to be slotted into an array of global market vehicles. However, utilizing Chinese labor could cause problems for Mercedes on the U.S. market — which is allegedly why it’s looking to BMW for help.


According to Autocar, Mercedes-Benz has confirmed that it and BMW are “already at high level of planning and negotiations, and an announcement on whether it will go ahead [is] expected before the end of the year.” BMW has said nothing on the matter, however.

From Autocar:


The agreement between the rival companies is being framed as a “strategic step to cut development costs”.
For Mercedes, it would secure a Euro 7-compliant engine supply – crucial to the continuation of ICE models – while helping it to expand plug-in hybrid offerings without further heavy investment in four-cylinder engine development.
The move comes as Mercedes phases in its new turbocharged 1.5-litre four-cylinder M252 engine, developed in-house in Germany but produced in China by Horse, a joint venture between Geely and Renault.
Already offered in the new CLA, the M252 engine is offered with three outputs – 136bhp, 163bhp and 190bhp – and combined with a an eight-speed dual-clutch automatic gearbox housing a 27bhp electric motor.


Unlike the M252 (shown inside the above CLA), the BMW-derived engine is supposed to be able to support PHEV or range-extenders. That could further help it satisfy stringent European emissions while also avoiding supply issues between the United States and China.

Germany's Manager Magazin was the first outlet to note the German brands’ prospective collaboration. It noted that the motor — assumed to be another 2.0-liter turbo based on the B48 (pictured above)— would likely find its way into models like the “CLA through the GLA, GLB, C-Class, E-Class and GLC.”


Assembly is assumed to take place in Steyr, Austria, with the engine being able to be packaged for both longitudinal and transverse layouts. The first models assumed to use the motor are anticipated to arrive sometime in 2027.


While it’s genuinely odd to see two of the most bitter automotive rivals talking about such deep collaboration, Mercedes is assumed to have been caught with its pants down over electrification efforts. The brand arguably dove into EVs a little sooner than some of its rivals and has found itself in a position where it needs to transition quickly back to combustion models to drive sales. But it may not want to abandon EV development if it thinks gasoline-powered models will eventually be mandated out of existence.


Expect an update on this story later this year.

[Images: Mercedes-Benz]

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Matt Posky
Matt Posky

Consumer advocate tracking industry trends and regulations. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied, he pivoted to writing about cars. Since then, he has become an ardent supporter of the right-to-repair movement, been interviewed about the automotive sector by national broadcasts, participated in a few amateur rallying events, and driven more rental cars than anyone ever should. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and learned to drive by twelve. A contrarian, Matt claims to prefer understeer and motorcycles.

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  • Stellantis Guy Stellantis Guy on Aug 22, 2025

    I'm thinking Mercedes should produce grille emblems and outsource everything else.

    • Stellantis Guy Stellantis Guy on Aug 24, 2025

      Back when I had kids at home and you could still order stuff from China (and the world had electricity) I picked up some illuminated badminton birdies [fastest moving object in sport -- look it up]. Good times.

      (Well it was fun until the batteries set the shed on fire, not really, but some of you looked hopeful for a second.)

      Oh sorry, we were discussing Mercedes grille emblems, not things that light up.

  • Scott Scott on Aug 22, 2025

    M-B, once upon a time many decades ago, was known for its engineering to the point they even made world class airo engines. Now they just buy their engineering from outside companies. Even GM does more of their engineering in house.

    • See 1 previous
    • 28-Cars-Later 28-Cars-Later on Aug 22, 2025

      That's going to work so well for them when en masse it is realized they aren't tech or software companies.


  • Vid169489471 The technology exists today to produce a variable color temperature (kelvin) LED lamp. It can vary from 2700k that soft orange look to 6500k the bright daylight with the bluish tint.Since everything in a late model car is computer controlled, it would be an easy task to write a few lines of code that enables your vehicle to not only dim down from hi to low beam but to shift color temp down to the 2700k range for oncoming traffic, then back up to 5000k once oncoming traffic has passed. For the operator it would be automatic and seamless. For older cars they could be retrofitted with LEDs that are 2700k on low beam and 5000k on hi beam. As far as standards, there could be a lumens max, and a minimum. Several States already have minimum lumen standards going back to the old incandescent bulbs. Why not update these to national standards.
  • Jam169859557 More regulation is needed for ALL vehicle lighting systems. [list=1][*]The lighting that is most blinding are the rapidly flashing red, blue and amber lights on emergency vehicles. The lights themselves are blinding, flashing so rapidly that it's impossible for even the sharpest eyes to adjust. What's worse, is the nature of the emergency requires a careful view of the area surrounding the emergency vehicle. There is something going on that needs to be seen. More flashing lights is not the solution.[/*][*]Brighter headlights need to be regulated. The tall riding vehicles do not need headlights positioned so high that they blind drivers in lower riding vehicles. And those heasdlights need to be aimed properly. When I first started driving my 2020 Subaru Outback, many drivers would flash their lights, hoping I would dim my lights. This stopped after I performed am easy adjustment that tilted the beam lower. Late model Subaru headlamps are designed with a sharp cutoff that project less glare above the hood line. When the headlights are properly aimed, other drivers are not blinded by the beam.[/*][*]Customized light assemblies make it more difficult to see the marker lights (tail lamps, turn signals and side marker lamps) that have been tinted. There are many municiple codes that prohibit this tinting, but these laws are seldom enforced.[/*][/list=1]Solutions: Tight controls on emergency vehicle lighting. In trying to make these vehicles more visible, a dangerous side effect is reducing the ability of drivers to see the surrounding perils.Headlight design regulations that reduce the height of the headlight assemblies. Just because a pickup truck has a hood that sits 4 feet abouve the pavement, it does not mean the headlights need to be so high. Owneres should maintain proper adjustments to their vehicle headlights.Establish and enforce regulation requiring a illumination standard be followed.
  • Stl170698708 as someone who hates big government, and their interference;but you can add me to the list of people that are blinded by the lights.unfortunately "the poop is out of the horse and no way is it going back in"They have had 5 years to make lights bigger, badder and brighter because in the vehicle work it is go big or go home!Trucks are the worst because so many people use them to express their dominance and that is big, big, big $$ both at the Original Purchase and in the Aftermarket world.If, we are so lucky to get some good government regulation on this it will also take some very good Court enforcement to get the aftermarket people with fines and lawsuits.Much like the EPA did with the Diesel Tuner Industry that felt emission regulations didn't apply to them.This is from someone that owns said pickup truck with the same bright headlights,but i only use the truck when I have too and always turn off the Fog lights when driving in traffic.
  • Art65765977 I saw a porsche 911 with the most amazing headlights from behind approaching the Sunshine skyway in Florida. The pattern was 108 degrees across sweeping the road like a broom. My brother and I were amazed. I don't know what it looked like from the front but i am sure it was better than American cars
  • Master Baiter This is what happens when you take a chance on a startup auto company. Designing and building cars is hard.
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