TSLA379.7104.59%
GM78.100-0.43%
F14.1100%
RIVN15.6300.77%
CYD44.820-2.38%
HMC26.8300.69%
TM171.4804.98%
CVNA62.310-3.89%
PAG182.210-1.63%
LAD292.100-4.63%
AN191.640-0.41%
GPI301.7400.92%
ABG205.1702.12%
SAH84.5101.8%
TSLA379.7104.59%
GM78.100-0.43%
F14.1100%
RIVN15.6300.77%
CYD44.820-2.38%
HMC26.8300.69%
TM171.4804.98%
CVNA62.310-3.89%
PAG182.210-1.63%
LAD292.100-4.63%
AN191.640-0.41%
GPI301.7400.92%
ABG205.1702.12%
SAH84.5101.8%
TSLA379.7104.59%
GM78.100-0.43%
F14.1100%
RIVN15.6300.77%
CYD44.820-2.38%
HMC26.8300.69%
TM171.4804.98%
CVNA62.310-3.89%
PAG182.210-1.63%
LAD292.100-4.63%
AN191.640-0.41%
GPI301.7400.92%
ABG205.1702.12%
SAH84.5101.8%

Mercedes-Benz reportedly in talks to use BMW engines

The collaboration could extend hybrid production and ease the transition to an electric future.
Mercedes-Benz may use BMW engines to extend hybrid production and meet emissions rules while advancing its EV strategy.

Photo By: Mercedes-Benz

On the Dash:

  • Mercedes-Benz may use BMW engines to extend hybrid production and support its gas and EV strategy.
  • BMW engines could help Mercedes meet EU emissions rules and keep U.S. hybrids viable.
  • The deal could cut costs and mark a rare collaboration between German rivals.

Mercedes-Benz is reportedly in advanced discussions with BMW to source four-cylinder petrol engines for several upcoming models, a move that could reshape competition among German luxury automakers. The talks, first reported by the U.K.’s Autocar, come as Mercedes reevaluates its internal combustion engine strategy amid slower-than-expected electric vehicle adoption.

According to industry reports, the potential agreement could be finalized before the end of 2025. The engines in question would likely be integrated into hybrid models, supporting Mercedesplan to continue offering gasoline-powered vehicles alongside its expanding EV lineup. While neither automaker has publicly confirmed the negotiations, sources suggest planning has already reached a high level.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

If the deal proceeds, BMW’s engines could power a wide range of future Mercedes vehicles, including the CLA, GLA, GLB, C-Class, E-Class, GLC, and the proposed compactbaby G-Wagen.The collaboration would help Mercedes comply with new European Union emissions regulations set to take effect next year while also ensuring hybrid offerings remain viable in key markets such as the United States.

Mercedes has already developed a new 1.5-liter four-cylinder engine for its next-generation CLA hybrid. However, reports indicate that this engine is not currently engineered for use in traditional plug-in hybrids or as a range extender, limiting its flexibility. BMW’s established four-cylinder technology, by contrast, is suited for these applications, potentially saving Mercedes significant development costs and allowing it to maintain production of hybrid models longer than expected.

For BMW, the rationale behind supplying engines to a historic competitor remains unclear. Still, the move could deliver financial benefits and create a surprising new connection between two brands long viewed as rivals. For Mercedes, the partnership could provide critical breathing room as it pushes ahead with a dual-track strategy of building both combustion-powered and electric vehicles on shared platforms.

While details remain unconfirmed, industry observers expect a final decision by year’s end. If approved, the collaboration would mark one of the most significant cooperative efforts between German automakers in recent years.

Read More
More from Articles
Stellantis, Nissan in talks to buy assets of former parts supplier

Stellantis, Nissan in talks to buy assets of former parts supplier

- June 26, 2026
On the Dash: Stellantis and Nissan are in talks to buy assets from bankrupt supplier Marelli, Bloomberg reports. Stellantis wants Marelli's suspension business; Nissan eyes cockpit assets in Japan. Marelli...
CarGurus to require fee disclosure for used vehicle listings beginning July 14

CarGurus to require fee disclosure for used vehicle listings beginning July 14

- June 26, 2026
On the Dash: Dealers should disclose all applicable fees on used vehicle listings before July 14 to avoid lower search visibility. CarGurus will soon calculate its IMV and Deal Ratings...
Volkswagen weighs cutting up to 100,000 jobs, closing four German plants

Volkswagen weighs cutting up to 100,000 jobs, closing four German plants

- June 26, 2026
On the Dash: Volkswagen may cut up to 100,000 jobs, doubling a previously announced reduction target. The automaker is considering closing four German plants, including facilities in Hanover, Zwickau, Emden...
Affordability alert: The car you could afford in 2019 costs $11,000 more today.

Dealers face affordability squeeze as entry-level vehicles disappear, report finds

- June 26, 2026
On the Dash: Dealers face affordability crunch as entry-level vehicles disappear Affordability concerns rise as new-vehicle prices have increased by more than $11,000 since 2019. Budget cars are nearly gone,...