Mercedes Distances Itself from BMW Engine Collaboration
The automotive industry is abuzz with the latest news from Mercedes and BMW. Contrary to early reports, Mercedes has denied any plans for a partnership with BMW to supply four-cylinder engines for plug-in hybrid vehicles (PHEVs).
According to reports from Manager Magazin on August 21, 2025, Mercedes CEO Ola Källenius had proactively initiated discussions with BMW about a possible supply of four-cylinder engines. However, these speculations were put to rest by Mercedes' Chief Technology Officer, Markus Schäfer, who stated that the company has no plans to borrow hardware from another automaker, especially BMW.
The supposed alliance was said to be born out of necessity, as Mercedes was searching for a compact gasoline engine for PHEV applications. The M252 engine of Mercedes was apparently not fully suited for PHEVs, leading to the exploration of potential partnerships.
Rumours of a partnership between the two German giants had surfaced last month, with some suggesting that Mercedes was set to source four-cylinder gasoline engines from Munich. However, the partnership was reported to be an unlikely one, given Mercedes' existing partnership with Geely, a Chinese automaker, which focuses on electrified combustion engines.
BMW, on the other hand, is well-known for its range-extending technology, as seen in the i3 REx. In these cars, the gas engine serves as a generator to charge the battery on the go, much like in the i3 REx. However, it's unclear if there was any truth to the early reports of Mercedes using BMW's B48 engine, especially since Schäfer has stated that Mercedes will not use BMW's B48 engine.
Meanwhile, Mercedes has developed its own family of modular engines, called FAME, which covers all displacements and is ready to meet EU7, China 7, and US regulations. This development suggests that Mercedes is capable of meeting its own engine needs without relying on partnerships.
Despite the denial of a partnership, the supposed alliance between Mercedes and BMW could have accelerated development, reduced costs, and brought PHEVs to market faster and at lower prices. For now, both companies remain focused on their individual paths in the rapidly evolving world of electric and hybrid vehicles.
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