Mercedes denies BMW engine tie-up rumours

German luxury brand has quashed rumours of sourcing BMW engines, stressing on its heavy investment in in-house powertrains.

Published on Sep 09, 2025 03:12:00 PM

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Mercedes-Benz CTO and board member Markus Schaefer emphatically says that Mercedes will not be outsourcing its combustion engines.

Mercedes-Benz CTO and board member Markus Schaefer has dismissed reports that the company could source engines from BMW, calling the speculation “not true” and reaffirming the brand’s commitment to its own powertrain family.

  1. Mercedes’ modular FAME engine family covered for future emissions norms
  2. Will continue to offer V8 and V12 engines as well

Mercedes’ FAME engine family is already future proof

“I didn’t place the story. I can only tell you we created a new family of engines, called FAME (Family of Modular Engines) about four years ago,” said Schaefer on the sidelines of the Munich Mobility Show. “We completely redesigned our four-cylinder and six-cylinder engine portfolio to the so-called FAME family. It’s updated to EU7, China 7 and US emission regulations. On top, we created a new V8, which is almost finished and a brand new EU7-compliant, high-performance V8. And we will continue to offer V12s as well.”

His comments come after a wave of reports in Europe suggested Mercedes was in advanced talks with BMW to use its 2.0-litre B48 turbo-petrol engine for future C-Class and E-Class models, as well as compact offerings like the GLA and CLA. Rumours pointed to a cost-saving alliance that would help Mercedes meet stringent Euro 7 regulations, especially for plug-in hybrids. Schaefer, however, insists Mercedes has invested heavily to ensure self-sufficiency.

The FAME modular family underpins everything from four-pots to V12s, allowing the Stuttgart carmaker to keep combustion engines alive alongside its aggressive EV push. Schaefer even stressed the brand’s future portfolio remains diverse. “We have a V12 in the offering. And we will continue to offer V12s. I’ll just stop there.”

While electrification is accelerating, Mercedes’ latest electric GLC will be priced close to its ICE counterpart for the first time. But Schaefer’s firm denial underlines that Mercedes will not be outsourcing its combustion heart anytime soon – and that it still views engines as central to the brand’s DNA. 

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