Mercedes-Benz and BMW, long-standing rivals in the German automotive industry, are reportedly in advanced talks regarding an engine partnership. This collaboration, if finalized, would mark a significant milestone in the German auto industry. According to reports, Mercedes may utilize BMW’s renowned B48 four-cylinder turbocharged engine in its upcoming petrol and plug-in hybrid cars. This engine is already employed in numerous BMW and Mini models. Its adaptability to various car platforms, including transverse and longitudinal layouts, makes it suitable for Mercedes models such as the CLA, GLA, GLB, C-Class, E-Class, and the forthcoming Little G SUV.
Currently, Mercedes has a 1.5-liter M252 engine, which is suitable for mild-hybrid technology but not viable for plug-in hybrid or range-extender applications. The B48 engine could fulfill this gap. The engine production could potentially take place at BMW’s Steyr plant in Austria. Furthermore, both companies are considering a joint factory in the United States to circumvent rising import duties. This deal presents several advantages for Mercedes, including immediate access to a certified, Euro-7 compliant engine without extensive R&D expenditure, allowing the company to accelerate its plug-in hybrid range expansion. BMW would also benefit, maximizing its production capacity and improving factory efficiency through increased engine supply.