In the automotive world, the rivalry between BMW and Mercedes-Benz is one of the deepest and longest-lasting ones – nearly a century old. Think of it as the Teutonic version of the grand Ford-versus-General Motors rivalry in the U.S.
Which makes reports that BMW could eventually supply engines to Mercedes-Benz all the more surprising. Clearly, this falls into the Who Would Have Guessed? Category.
As first reported by German outlet Manager Magazin, Mercedes-Benz is believed to be in talks with BMW to purchase 4-cylinder engines that would serve its lineup starting in 2027.
If that’s so, the engine is likely the 2.0L turbocharged engine used in practically all of BMW's current models. Its use by Mercedes-Benz would allow it to fill a gap in its lineup as a PHEV engine or as a range extender, according to a report by Autocar.
This 4-cylinder engine, which is manufactured in Steyr, Austria, also offers more flexibility, since it’s designed to be mounted either longitudinally or transversely, which makes it practical for use in several different models.
At the time of writing, neither company had commented on the matter.
Why?
According to the circulating information, BMW's engine reportedly has more flexibility than the new Mercedes-Benz 4-cylinder that just debuted with the CLA. That engine features a mild-hybrid component but can’t be used within a plug-in hybrid system.
What’s more, Mercedes’ engine is manufactured in China, which in the current context implies significant customs duties for cars destined for the U.S.
Autocar also reported on a possible deal between BMW and Mercedes-Benz to build of a joint engine plant in the U.S., which would completely negate customs duties, at least on the engines.
If this materializes, it will be unusual given the rivalry between the German automakers; certainly it would be a first of its kind for BMW and Mercedes-Benz. But for BMW, it’s not unprecedented. The company has already supplied engines to other manufacturers, including Range Rover and, more recently, Toyota for the jointly developed Supra. We’ve also seen Ford and General Motors collaborate on the production of a 10-speed transmission.