Overview

• Reports from Manager Magazin and Autocar say negotiations are at a high planning stage for BMW to supply 2.0‑liter B48‑derived engines to Mercedes.
• The BMW unit is considered to enable plug‑in hybrid and range‑extender applications that Mercedes’ new M252 1.5‑liter, mild‑hybrid engine does not support.
• Targets outlined in coverage point to use across compact and mid‑size models such as the CLA, GLA, GLB, C‑Class, E‑Class and GLC, with first applications reportedly around 2027.
• Production is discussed for BMW’s Steyr plant in Austria with a potential shared U.S. engine facility floated to avoid tariffs and expand capacity.
• An announcement on whether the deal proceeds is widely expected before the end of 2025, and outlets note BMW has not issued a public comment.