Using BMW powertrains would provide Mercedes with support as EV buy-in remains below forecasts
In a surprising twist, BMW engines could soon find their way into Mercedes-Benz cars. German outlet Manager Magazin reports that Mercedes is in talks with its longtime rival to source four-cylinder engines starting in 2027.
The engine in question is said to be a version of BMW’s turbocharged 2.0-liter B48, used widely across the brand’s current lineup. Built in Steyr, Austria, the B48 is adaptable for both longitudinal and transverse setups, making it ideal for a range of compact and mid-size Mercedes models as either a PHEV motor or range extender, according to Autocar.
BMW declined to comment, while Mercedes has yet to respond to inquiries.
The deal raises questions since Mercedes only recently launched its own four-cylinder, the M252, found in the CLA with a mild-hybrid system. However, reports suggest the M252 isn’t well-suited for plug-in hybrid use, and with production based in China, US-bound models could face steep tariffs. A BMW partnership might solve that problem by enabling a shared US engine plant, sidestepping tariffs entirely.
The rumor comes as Mercedes adjusts its strategy amid slower-than-expected EV adoption. Once committed to going fully electric by 2030, the company scaled back those plans in 2024, with CEO Ola Källenius stating last year that internal combustion engines will remain “well into the 2030s.”
For BMW, supplying engines is nothing new—it already provides powertrains for Morgan, Ineos, Range Rover, and even Toyota’s Supra. But if this deal materializes, it would mark the first time two German luxury giants shared engines at this scale.
