Mercedes could use a BMW engine for future petrol-hybrid models

This comes amid the backdrop of Mercedes having to rethink its ICE strategy due to slower-than-expected uptake of EVs.

Published on Aug 22, 2025 02:39:00 PM

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Mercedes-Benz is reportedly in advanced talks with BMW to potentially use a 4-cylinder petrol engine from its German rival for a wide range of future cars, our sister publication Autocar UK has learnt. Should the deal go ahead, it will be a historic first where the two arch rivals will be sharing a common powertrain.

  1. Mercedes likely to source a 2.0-litre petrol engine from BMW
  2. Expected to be offered on models like the CLA, GLA, C-Class, and more
  3. Said engine is compatible with PHEV and range-extender applications

A Mercedes source told Autocar UK that the two companies are already at a high level of planning and negotiation, and an official announcement is expected by the end of this year. A comment from BMW on this, however, is still awaited.

As part of the deal, BMW is rumoured to supply Mercedes-Benz with a 2.0-litre, 4-cylinder petrol engine for use in a wide range of cars, including the CLA, GLA, GLB, C-Class, E-Class and even the upcoming ‘Little G’. This will help Mercedes-Benz cut down its development costs.

Why does Mercedes need a BMW-supplied engine?

The BMW engine is important for Mercedes because it will help the brand expand its range of plug-in hybrid offerings without needing to invest in a new 4-cylinder unit. Now, Mercedes already has a small-capacity, 4-cylinder petrol engine – the 1.5-litre M 252 that’s currently offered with the new CLA – which is produced in China by HORSE, a joint venture between Geely and Renault.

This engine is offered in three states of tune – 138hp, 165hp and 193hp – and comes paired with an 8-speed dual-clutch automatic gearbox housing a 27hp electric motor. But while this engine is suitable for mild-hybrid applications, insiders say it isn’t engineered for plug-in hybrids or range extenders.

The BMW-supplied engine will, therefore, be crucial to fill in this gap, and it will also give Mercedes a Euro 7-compliant engine to continue to sell ICE cars. This, of course, comes amid the backdrop of slower-than-expected adoption of EVs, which has prompted Mercedes to rethink its ICE strategy.

That said, the 2.0-litre B48 engine currently does duty in a range of BMW and Mini models and is packaged for both longitudinal and transverse layouts. This should give Mercedes more flexibility across both its compact and midsize models and, more importantly, a lot more scope than Mercedes’s own M 252 engine.

The proposed partnership could also extend to global production hubs, including a potential shared engine plant in the US to sidestep rising import tariffs. There’s also a potential to even share gearboxes in the longer run.

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