For the past few weeks, rumours in the air indicated that the two biggest European automotive giants, Mercedes-Benz and BMW, will come together for a strategic partnership. It was rumoured that under this alliance, the former will source powertrains from the latter, in order to meet stringent Euro 7 regulations, especially for plug-in hybrids. However, these rumours have been put to rest.
According to Autocar India, Mercedes-Benz has denied any tie ups with BMW which happens to be its staunch rival. In an interview with the magazine, Mercedes-Benz CTO and board member Markus Schaefer has refuted these reports calling them untrue while reaffirming the brand’s commitment to its own powertrain family.
Mercedes-Benz developing own set of engines
Schaefer revealed that Mercedes developed a new series of engines called FAME (Family of Modular Engines) about four years ago. He added that Mercedes has redesigned its entire four-cylinder and six-cylinder engine portfolio in order to meet the updated EU7, China 7 and US emission regulations. In addition, the German marque is developing an all-new V8 power plant that is almost complete and more importantly compliant with EU7 emission standards.

Besides the new high-performance V8, Mercedes will continue to offer V12 offered in the flagship AMG models. Schaefer didn’t reveal any specific details about the new range of FAME engines, however, he stressed on the fact that the company’s portfolio will remain one of the most diverse out there in the market that will include mild-hybrids, plug-in hybrids, and fully-electric powertrains.
ICE engines to co-exist alongside battery powertrains
Certain reports had suggested a potential agreement beginning in 2027, with Mercedes reportedly evaluating BMW’s four-cylinder engines as replacements for its own small-capacity units. Several media reports in Europe suggested that Mercedes was in advance discussion with BMW to utilise its 2.0-litre B48 turbo-petrol engine for new generation C-Class and E-Class models, and compact models like GLA and CLA.
The presumed alliance between the two German luxury carmakers would have reportedly saved the cost of development of new engines for Mercedes. On the contrary, Schaefer insists that Mercedes has invested heavily to ensure self-sufficiency.

Mercedes-Benz recently unveiled the new-gen GLC in a fully-electric avatar at the IAA Mobility Show in Munich, Germany. It is being speculated that the battery-powered GLC is likely to be priced close to its combustion-powered sibling. It will lock horns with the BMW iX3 which also broke cover at the annual German motor exhibition.