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Mercedes, BMW in Advanced Talks on Four-Cylinder Engine Supply

Reports point to a cost-saving powertrain pact driven by Mercedes' EV course correction.

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Overview

  • Manager Magazin and Autocar report high-level negotiations for BMW four-cylinder engines to power many smaller Mercedes models.
  • The plan under discussion would cover models such as the CLA, GLA, GLB, C‑Class and the planned “Little G,” with some reports extending scope up to the E‑Class.
  • BMW’s B48 2.0‑liter turbo is cited as a candidate because it fits longitudinal or transverse layouts and can support plug‑in‑hybrid and range‑extender roles.
  • Talks reportedly include sharing transmissions and entire electrified powertrains in addition to engines.
  • An announcement is expected before the end of 2025, with first applications around 2027 and potential production tapping BMW’s Steyr capacity or a possible shared U.S. plant to address tariffs.