The company is facing an acute shortage of engines for plug-in hybrids. Previously, Mercedes tried to negotiate supplies with Chinese Geely, but the project was not implemented for political reasons.
Mercedes-Benz is working on the prospect of equipping its new models with engines produced by its long-time competitor, BMW. This is reported by Manager Magazin, citing sources familiar with the situation. According to them, negotiations are already underway, and actual deliveries may begin in 2027.
The publication claims that discussions of a partnership between the concerns within the framework of specially created technical groups led by members of the boards of directors have been underway for almost a year. According to preliminary data, BMW plans to produce engines for Mercedes-Benz at a plant in Steyr, Austria.
At the first stage, a four-cylinder gasoline engine is considered as the main supply object. Mercedes-Benz, which expects to increase the production of hybrid cars as part of its new engine strategy, plans to use it in gasoline-electric units. However, insiders claim that the possibility of purchasing diesel engines and transmission components is already being discussed. In addition, European companies are considering the prospect of organizing joint production of power units in the United States to bypass the current duties.