Mercedes Could Source Engines From Rival BMW In 2027

In a surprising twist, Mercedes-Benz is reportedly in talks to buy four-cylinder engines from its long-time rival BMW. According to German outlet Manager Magazin, the deal could see BMW powertrains appear in Mercedes models from 2027, marking an unprecedented collaboration between two of Germany’s automotive giants.

The engine in question is said to be a version of BMW’s 2.0-litre turbocharged B48, a unit already used widely across BMW’s range. Built in Steyr, Austria, the B48 is adaptable for both longitudinal and transverse layouts, making it suitable for everything from compact cars to larger plug-in hybrids. For Mercedes, it could serve as a PHEV motor or range extender, neatly filling gaps in its line-up.

The rumour comes as Mercedes rebalances its strategy amid slowing global demand for electric cars. Once committed to going fully electric by 2030, the brand has since softened its stance, with CEO Ola Källenius admitting combustion technology will remain “well into the 2030s.” Using BMW’s engine could also avoid the tariff complications of Mercedes’ own Chinese-built M252 unit, which is not well-suited for hybrid integration.

BMW is no stranger to supplying engines. It already provides powertrains for Morgan, Ineos and Range Rover, and its partnership with Toyota for the Supra goes far beyond engines. But if the talks with Mercedes materialise, it would be the first time two of Germany’s fiercest luxury rivals shared such a critical component on this scale.

Neither BMW nor Mercedes has officially commented, but if confirmed, the deal could mark a turning point in the industry — a pragmatic truce between two competitors brought together by shifting technology demands and market realities.