Mercedes-Benz publicly denied the August 2025 report that it was in advanced talks to use BMW four-cylinder petrol engines. The reported supply deal was never announced, and the possible vehicles and uses in the report were not confirmed plans.
What did the original report say?
On 21 August 2025, Autocar’s Greg Kable reported that Mercedes-Benz and BMW were in advanced talks about a possible supply of BMW four-cylinder petrol engines for future Mercedes vehicles. The report attributed the negotiations to an unnamed Mercedes source and said Autocar had approached BMW for comment. It did not describe an agreed or announced partnership. Autocar’s report
Autocar listed potential applications ranging from the CLA and GLA to the GLB, C-Class, E-Class, GLC and a smaller G-Class model. It also suggested the engines could support plug-in hybrids or range extenders, help reduce development costs, and possibly be produced in Austria or at a shared U.S. plant. These were possibilities in the report, not confirmed vehicle specifications, production plans or a supply agreement.
What did Mercedes-Benz say?
At the IAA show in Munich in September 2025, Mercedes-Benz CTO and Board of Management member Markus Schäfer was asked about the rumor. Car and Driver reported his response: “There is no truth to this.” Car and Driver’s account
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Car and Driver also quoted Schäfer saying Mercedes had developed its own modular engine family, FAME (Family of Modular Engines), covering all displacements and compliant with EU7, China 7 and U.S. regulations. The denial is the clearest company response in the available reporting; the original story should therefore be read as attributed reporting about negotiations, not a deal Mercedes later confirmed.
What Mercedes-Benz’s engine strategy shows
Mercedes-Benz’s 2026 Strategy Update presents an EU7-ready electrified combustion-engine range comprising four-cylinder petrol and diesel engines, six-cylinder petrol and diesel engines, and eight-cylinder petrol engines. The update describes the company’s engine lineup but does not directly revisit the BMW rumor. Mercedes-Benz 2026 Strategy Update
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Earlier, at its Capital Market Day on 20 February 2025, Mercedes-Benz said it already had EU7-ready engines and transmissions from four to eight cylinders. It also said the new CLA’s four-cylinder engine was developed and designed by Mercedes-Benz and was being industrialised with a partner in China. That background helps explain the company’s stated engine strategy, but it does not independently prove or disprove whether discussions with BMW ever took place. Mercedes-Benz Capital Market Day 2025 materials
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is known—and what remains unconfirmed
- Reported: Autocar described advanced talks about a possible BMW four-cylinder petrol-engine supply, citing an unnamed Mercedes source.
- Denied: In September 2025, Schäfer said there was “no truth” to the rumor, as quoted by Car and Driver.
- Not confirmed: No deal, recipient models, hybrid or range-extender applications, or production locations were announced in the cited material.
- Later context: Mercedes-Benz’s 2026 strategy material describes a broad EU7-ready engine range but does not address the specific report.
The available sources do not establish whether Mercedes-Benz or BMW later issued another direct statement about the reported talks. There is no basis here to describe the proposal as a current plan or as an active partnership.
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