Recent rumors suggesting a groundbreaking partnership between Mercedes-Benz and BMW for engine sharing have been unequivocally refuted by Mercedes-Benz. The speculation, which arose last month, indicated that Mercedes-Benz might adopt BMW's B48 2.0-liter turbocharged four-cylinder engine for its future plug-in hybrid vehicles, particularly targeting smaller models. This hypothetical collaboration was believed to mitigate development costs, ensure compliance with stringent Euro 7 emissions regulations, and potentially circumvent trade tariffs. However, Mercedes-Benz executives, during the IAA Mobility Show in Munich, firmly dismissed these claims, emphasizing their commitment to internal engineering and a diversified product roadmap, ensuring their continued autonomy and innovation in the automotive sector.
The circulating reports in August suggested an imminent agreement between the two German automotive giants, a development that would have marked a significant shift in their long-standing competitive dynamic. The proposed engine supply deal centered around BMW's B48 unit, a well-regarded powerplant, destined for Mercedes' smaller hybrid offerings with a projected production start around 2027. Such a move would have been unprecedented, given the fierce rivalry between the two brands, yet it was posited as a pragmatic solution to shared industry challenges like escalating emissions standards and rising development expenditures.
Markus Schaefer, the Chief Technology Officer and a board member at Mercedes-Benz Group, explicitly addressed the matter, stating the reports were unfounded. He clarified that Mercedes-Benz possesses its own advanced internal combustion engine family, known as FAME (Family of Modular Engines). This modular design is versatile, encompassing configurations from four-cylinder to twelve-cylinder units, meticulously engineered to satisfy future global emissions mandates without external reliance.
Schaefer further articulated Mercedes-Benz's strategy to maintain a comprehensive range of internal combustion engines, notably including new V8 and even V12 powertrains. He highlighted that the FAME engines are thoroughly modernized and fully equipped to adhere to the most rigorous international environmental standards. For its entry-level models, Mercedes has established a distinct partnership, with the upcoming CLA-Class adopting a hybrid system developed by Horse, a joint venture between Geely and Renault, a collaboration entirely separate from any dealings with BMW or the FAME architecture.
Beyond its engine development, Mercedes-Benz has an ambitious product pipeline. The company recently offered a glimpse of a G-Class Cabriolet, signaling the return of the convertible version of the iconic off-roader, last seen almost a decade ago. This model is anticipated to launch around the 2026 model year, featuring the characteristic boxy shape with a retractable soft top. Furthermore, a "Baby G" is currently under development, expected to be a more compact iteration of the G-Wagen, likely built on a bespoke platform rather than a truncated G-Class chassis. While powertrain details for the "Baby G" remain undisclosed, both conventional combustion and electric variants are considered possibilities.
At the more accessible end of its lineup, the GLA-Class, which stands as Mercedes' most budget-friendly offering in the US, is slated for a significant update. This refresh will bring revised aesthetics, enhanced technological features, and a novel hybrid powertrain. These diverse initiatives underscore Mercedes-Benz's strategic intent to expand its vehicle portfolio, adeptly balancing the burgeoning electric vehicle market with its enduring legacy of traditional automotive excellence.