---
title: "Mercedes-Benz May Adopt BMW Engines to Cut Costs. No, Really"
date: "2025-08-21"
modified: "2025-08-21"
authors:
  - name: "Adam Ismail"
    job_title: "Senior Editor"
    link: "https://www.thedrive.com/authors/adam-ismail"
url: "https://www.thedrive.com/news/mercedes-benz-may-adopt-bmw-engines-to-cut-costs-no-really"
categories:
  - "Mercedes-Benz News"
  - "News"
  - "News by Brand"
tags:
  - "CLA"
  - "CLA-Class"
  - "compact"
  - "hybrid"
  - "Mercedes"
  - "sedan"
---

# Mercedes-Benz May Adopt BMW Engines to Cut Costs. No, Really

![Mercedes CLA-Class](<https://www.thedrive.com/wp-content/uploads/2025/08/IMG_0058-copy.webp>)
*\<em\>Kyle Cheromcha\</em\>*

We've been hearing from industry executives and analysts alike that consolidation and partnerships between legacy brands are the only way forward to keep up with changing global regulations and the ascent of China's auto sector. If you had any doubt, consider this report out of Germany that [Mercedes-Benz](<https://www.thedrive.com/category/mercedes-news>) is in negotiations with [BMW](<https://www.thedrive.com/category/bmw-news>) to adopt its four-cylinder engines across a range of models.

As reported first by *[Manager Magazin](<https://www.manager-magazin.de/unternehmen/autoindustrie/mercedes-und-bmw-werden-aus-konkurrenten-bald-partner-motorenpakt-im-gespraech-a-598788b0-1997-4464-a586-8afa512cea56>)* and corroborated by *[Autocar](<https://www.autocar.co.uk/car-news/new-cars/mercedes-talks-use-bmw-engines-future-petrol-cars>)* citing a Mercedes source, the three-pointed-star brand is in "advanced talks" with its foremost rival to incorporate BMW mills in most of its smaller models. That would include the CLA, GLA, GLB, C-Class, and upcoming "Little G" off-roader, up to the E-Class. *Autocar* says that the move was described to it as a "strategic step to cut development costs."

Now, if you're closely following Mercedes' engine development as of late, you may already know that the company recently developed a four-cylinder of its own—a new 1.5-liter product that can be found in [the new CLA](<https://www.thedrive.com/news/2026-mercedes-cla-goes-ice-and-ev-so-it-can-succeed-where-eq-cars-failed>), and will be used in a mild-hybrid capacity. However, that engine supposedly isn't engineered for plug-in hybrid use, or use as a gas range extender for EVs.

![The four-cylinder engine in a 2024 Mercedes E350.](<https://www.thedrive.com/wp-content/uploads/2025/08/IMG_3665-copy.webp>)
*The four-cylinder engine in a 2024 Mercedes E350. *Adam Ismail**

A turbocharged derivative of BMW's two-liter B48 could fit that role well, the rationale goes. And since it's able to be fitted in longitudinal as well as transverse layouts, it's a more flexible choice for Mercedes' smaller cars.

As for what this would mean on our side of the pond, *Autocar's* report raises the potential construction of a "shared engine plant in the U.S. to sidestep rising import tariffs," as a result of this partnership. That's a wild thing to imagine—a joint BMW and Mercedes engine plant anywhere in the world, let alone North America—but, you know what they say about desperate times. And, many automakers like [Mercedes](<https://www.thedrive.com/news/mercedes-is-walking-back-its-all-ev-future-to-invest-in-high-tech-combustion>) are finding themselves in a pretty desperate one, expecting to spin down internal-combustion engine development five years ago, only to find that the all-EV world hasn't quite arrived yet. [On this side of the planet](<https://www.thedrive.com/news/jim-farley-drives-xiaomi-su7-ev>), anyway.

*Got tips? Send ’em to tips@thedrive.com*[](<https://www.thedrive.com/authors/ronan-glon>)

## Author
Adam is a Senior Editor at The Drive, concentrating on curating and developing the site's slate of daily journalism, from initial pitch to final copy edit. When he's not at his desk researching leads and working with writers, he's testing vehicles or reviewing racing games, new and old. He joined The Drive in 2023, following seven years of covering consumer technology and cars. A car lover and gamer since his earliest memories, Adam came to know the automotive world through video games. First it was Daytona USA, Sega Rally, and Ridge Racer; then came Need For Speed, which inspired an encyclopedic knowledge of '90s supercars, and, of course, Gran Turismo. If not for them, he'd assuredly be doing something else right now. Adam is based in the suburbs outside Philly, where there are ample roads for his hot hatch to stretch its legs. In his car, he's probably listening to indie rock, drum and bass, or Yankees baseball.

### Author social links  
[Bluesky](<https://bsky.app/profile/aismail.bsky.social>)  
[Instagram](<https://www.instagram.com/pioneerspine/>)  
[LinkedIn](<https://www.linkedin.com/in/aismail1/>)