Mercedes-Benz Denies Reports of Using BMW Engines in Future Models

The rumors of a potential alliance between Mercedes-Benz and BMW began circulating after a report from Autocar suggested that the companies were in advanced talks to share engines. According to the report, BMW's B48 engine, a turbocharged 2.0-liter four-cylinder, was slated to be used in a variety of Mercedes models, ranging from the smaller CLA-class sedan and GLA-class SUV to larger models like the E-class. The speculation also included the possibility of a joint engine production facility in the United States, aimed at streamlining operations and reducing costs.

However, these reports were quashed when Markus Schaefer, Chief Technology Officer and member of the Board of Management at Mercedes-Benz Group, addressed the rumors at the IAA show in Munich. Schaefer clarified that there was no truth to the claims, emphasizing that Mercedes-Benz has developed its own new family of modular engines, known as FAME (Family of Modular Engines). These engines are designed to comply with stringent emission regulations across Europe, China, and the United States, negating the need for external collaboration.

The initial report suggested that the partnership could benefit Mercedes-Benz by providing access to engines that meet the upcoming Euro 7 emissions standards and are suitable for plug-in hybrid applications. This would potentially allow Mercedes to avoid the financial burden of developing new engines independently. Despite the speculative nature of the reports, the idea of collaboration was not entirely unfounded, given the historical competition and recent shifts in the automotive industry towards efficiency and sustainability. Yet, Mercedes-Benz's recent strides in engine development showcase its commitment to maintaining technological independence.

The context of this speculation is significant, especially as Mercedes-Benz has faced challenges in the electric vehicle market. The brand's push into the EV sector has not met expectations, with sales of its electric models in the U.S. declining sharply in 2024. Mercedes-Benz plans to temporarily halt orders for several EV models, including the EQE sedan and SUV, as well as the EQS sedan and SUV, highlighting the ongoing adjustments in its strategy. In this light, any potential engine collaboration with BMW could have been seen as a strategic move to bolster its offerings amidst evolving market demands.

As the automotive industry continues to evolve, both Mercedes-Benz and BMW are likely to explore various strategies to remain competitive. While the current narrative suggests that Mercedes will not utilize BMW engines, the broader trend of collaboration among automakers, especially in areas of technological advancement and regulatory compliance, remains a possibility. For now, Mercedes-Benz's focus on its proprietary engine technology underlines its approach to innovation and independence in a rapidly changing landscape.