Mercedes with BMW engines? Negotiations are underway

Mercedes -Benz and BMW are two of the largest German car manufacturers, and could 'forge' a partnership for Mercedes models to use BMW engines in the future .

According to British publication Autocar, which cites a Mercedes source, negotiations on this possibility are advanced and an announcement is expected later this year .

At issue would be Mercedes' use of a new generation of BMW gasoline engines for some of its combustion models, thus allowing savings on development costs.

This would give the star-studded brand access to Euro 7-compliant powertrains and the potential for more plug-in hybrid models without having to invest heavily in four-cylinder gasoline engines. BMW powertrains could power cars like the CLA, GLA, GLB, C-Class, and E-Class, as well as the GLC.

The partnership could also involve shared factories outside Europe, one of them in the United States of America , in order to mitigate the impact of import tariffs for both manufacturers.

Engine produced in China will debut

Earlier this year, Mercedes introduced the new CLA, which features a 1.5-liter inline-four turbocharged gasoline engine. It is produced in China by the Horse joint venture , the result of the alliance between Geely and Renault. Its major limitation, according to Autocar, is that it is suitable for mild hybrid systems, but not plug-in hybrids.

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