Mercedes-Benz will start installing BMW engines from 2027

What engines will Mercedes get

The four-cylinder gasoline engine from BMW (presumably the B48 series) is planned to be used at launch. It will be used in the hybrid units of Mercedes-Benz. In addition, the purchase of diesel engines and drivetrain components is under discussion.

Also under consideration is the possibility of joint engine production in the US to circumvent trade tariffs and reduce costs.

Why it's profitable

* Mercedes-Benz is looking for a new engine supplier after Geely's engines failed to meet expectations. Partnering with BMW will allow the company to reduce development costs for new internal combustion engines and focus on electric vehicles and future technologies.

* BMW will utilize the plant in Steyr, Austria, and increase profits by supplying a competitor.

Outlook

Experts believe that this partnership will be mutually beneficial: Mercedes will get modern and economical engines for hybrids, and BMW will strengthen its position on the global market. The first Mercedes cars with BMW engines are expected in 2027.