Mercedes-Benz is in talks with BMW to use its 2.0-liter B48 petrol engine in upcoming models, including the CLA, GLA, GLB, C-Class, E-Class, GLC and the new compact “Little G” SUV. The engine already meets Euro 7 standards and works well in plug-in hybrid systems, making it a practical option as Mercedes looks to strengthen its hybrid range.
Production would likely take place at BMW’s Steyr plant in Austria, with a possible U.S. facility under discussion. An agreement could be announced before the end of 2025, and the first Mercedes models using BMW engines may reach the market in 2027.
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