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Mercedes-Benz was reported to be discussing a possible supply of BMW four-cylinder petrol engines for future cars. In September 2025, Mercedes-Benz chief technology officer Markus Schäfer rejected the reports. The cited material establishes neither a supply agreement nor whether private discussions occurred or were later revived.
What the August 2025 report claimed
On 21 August 2025, Autocar reported that an unnamed Mercedes source described high-level planning and negotiations with BMW. The report said BMW might supply four-cylinder petrol engines for future Mercedes models. It presented cost reduction and support for plug-in hybrid offerings as possible motivations, not confirmed terms of a deal.
Models and engine details mentioned
Autocar listed the CLA, GLA, GLB, C-Class, E-Class, GLC and a smaller “Little G” as possible applications. It described a turbocharged 2.0-litre version of BMW’s B48 four-cylinder engine as a rumor. Possible plug-in hybrid and range-extender applications, as well as a potential shared US engine plant, were also speculative details—not confirmed specifications, production plans or agreement terms.
What Mercedes-Benz said afterward
On 9 September 2025, Autocar India reported that Mercedes-Benz CTO and board member Markus Schäfer dismissed the engine-sourcing reports at the Munich Mobility Show. The outlet quoted him saying, “I didn’t place the story,” and characterized his response to the speculation as “not true.” Those remarks are reported by the outlet; the cited material does not include a primary Mercedes-Benz transcript or statement page.
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Schäfer also described Mercedes-Benz’s Family of Modular Engines, or FAME: “I can only tell you we created a new family of engines, called FAME (Family of Modular Engines) about four years ago,” he said, according to Autocar India.
How FAME fits the company’s public engine strategy
Before the August report, Mercedes-Benz’s 20 February 2025 Capital Market Day materials described a portfolio of EU-7-ready engines and transmissions spanning four to eight cylinders, with 12-cylinder engines continuing in selected markets. The company also said its four-cylinder engine for the new CLA was developed and designed by Mercedes-Benz and was being industrialized with a partner in China. This is background on the company’s stated strategy, not a direct response to the later engine-talk report. See the company’s Capital Market Day 2025 materials.
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What is established—and what is not
The August story was an unnamed-source report, not an announced contract. The later reported denial is a public response, but the cited sources do not independently establish the private negotiating history. They also do not show whether discussions were revived or an agreement was announced after the denial.
No quantified savings, number of affected vehicles or likelihood of a deal is established in the cited material. There are no confirmed competing engine offers or deal options to compare. The evidence supports describing the proposed BMW supply as a reported possibility that Mercedes-Benz later rejected—not as a confirmed change to Mercedes models.
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