Overview

• German outlet Manager Magazin first reported advanced negotiations, with Autocar and Italian publications relaying details cited to industry sources.
• The BMW B48 2.0-litre four-cylinder is identified as the likely engine for Mercedes plug-in hybrids and range-extender applications from around 2027.
• Production is reported to be slated for BMW’s Steyr plant in Austria, and a joint U.S. facility is under consideration to manage tariff exposure.
• If concluded, the deal would represent the first time Mercedes purchases combustion engines from BMW, reflecting rare cooperation between longtime rivals.
• Neither automaker has issued an official confirmation, and reported model candidates include the CLA, GLA, GLB, C-Class, E-Class, and GLC.