Mercedes, BMW and the Phantom Engine
This page is translated from the original post "Mercedes, BMW et le moteur fantome" in French.

Rumors, secret negotiations, and official denials. Mercedes and BMW engage in a strange ballet around engines.
While the automotive world scrutinizes every move, an almost comical scenario unfolds between two German giants, Mercedes-Benz and BMW. Historic rivals for nearly a century, they have reportedly come closer… to consider an unlikely engine partnership. According to our colleagues at Autocar, Mercedes is considering using BMW’s turbocharged four-cylinder engines in several of its models, ranging from the small CLA to the GLA, and up to the E-Class and GLC.
The discussions are said to be at an advanced stage, and an agreement could be announced before the end of 2025. However, speaking to the press at the IAAA Mobility Show in Munich, Mercedes quickly denied any intention. Technical director Markus Schaefer was clear: “There is no truth to this. We have developed our own family of modular FAME engines, already compliant with Euro 7, China 7, and US standards.” BMW, for its part, remains silent, adding to the impression of mystery and uncertainty.
Should this have been revealed?
The contrast is striking. On one side, Mercedes would have everything to gain from an engine ready for the future and compatible with plug-in hybrids, without spending millions on development. On the other side, historical pride and longstanding rivalry make the mere borrowing of an engine almost unthinkable. The result? A hesitant dance between two manufacturers, where each looks at and gauges the other, but neither truly moves.
The context makes the situation even more pathetic. As Mercedes struggles in the American electric market, with plummeting sales of its EQ models, the idea of turning to BMW could have appeared as a pragmatic resort. Yet, pride prevails, and the rumor may remain just a suspenseful episode in the history of the two brands.
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In the end, this ballet around engines illustrates a cruel reality: even German giants can find themselves paralyzed by their own ambitions and rivalries. The world watches, amused and a bit perplexed, as Mercedes and BMW continue to circle each other… without ever touching.
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