Mercedes Considers BMW Engines for Next-Gen Hybrids in Bold Shift Amid Slowing EV Demand

Mercedes Considers BMW Engines for Next-Gen Hybrids in Bold Shift Amid Slowing EV Demand

bmw 530e vs mercedes e300e jh 53
Next-generation E-Class PHEV could use a BMW-supplied engine
Tie-up could result in Mercedes using rival's four-pot for its next-generation PHEVs and range-extenders

Mercedes-Benz is in advanced talks about potentially using BMW's four-cylinder petrol engines for a wide range of future cars, as part of a radical rethink of its ICE strategy prompted by slower-than-expected take-up of its EVs.

A Mercedes source has told Autocar the two firms are already at high level of planning and negotiations, and an announcement on whether it will go ahead expected before the end of the year. Autocar has approached BMW for comment.

The potential tie-up – first uncovered by Germany's Manager Magazin – would have BMW providing a new generation of petrol engines for use in Mercedes models ranging from the CLA through the GLA, GLB, C-Class, E-Class and GLC to the upcoming 'Little G'.

The agreement between the rival companies is being framed as a “strategic step to cut development costs”.

For Mercedes, it would secure a Euro 7-compliant engine supply – crucial to the continuation of ICE models – while helping it to expand plug-in hybrid offerings without further heavy investment in four-cylinder engine development.

The move comes as Mercedes phases in its new turbocharged 1.5-litre four-cylinder M252 engine, developed in-house in Germany but produced in China by Horse, a joint venture between Geely and Renault.

Already offered in the new CLA, the M252 engine is offered with three outputs – 136bhp, 163bhp and 190bhp – and combined with a an eight-speed dual-clutch automatic gearbox housing a 27bhp electric motor.

However, insiders note that while the M252 is well suited to mild-hybrid applications, it isn't currently engineered for PHEV or range-extender use – a gap that a BMW-supplied engine could potentially fill.

Said engine is rumoured to be a turbocharged 2.0-litre derivative of the four-cylinder B48 engine, which is used in almost every current BMW and Mini model line.

Likely to be produced at a factory in Steyr, Austria, the B48 is claimed to offer greater scope than the M252, as it's packaged for both longitudinal and transverse layouts, giving Mercedes more flexibility across its both its compact and mid-sized models.

The proposed partnership could also extend to global production hubs, including a potential shared engine plant in the US to sidestep rising import tariffs.

Should the deal go ahead, it would mark a historic first: two of Germany’s luxury car makers sharing engines and potentially even gearboxes in the longer term.

Next-Gen Hyundai Elantra Unveiled With Bold New Design and Performance Upgrades

Next-Gen Hyundai Elantra Unveiled With Bold New Design and Performance Upgrades

The next-gen Elantra will continue to be sold with ICE, hybrid and LPG powertrains
Nissan X Trail Nismo Unleashed Sporty Design and Performance Upgrades Transform the Family SUV

Nissan X Trail Nismo Unleashed Sporty Design and Performance Upgrades Transform the Family SUV

Nissan X Trail Nismo Japan front quarter tracking Sportier version of family SUV is revealed in Japan with 201bhp and trick dampers

The Nissan X-Trail Nismo has been revealed in Japan as a sporting version of the brand’s family SUV, gaining a more aggressive look and chassis upgrades.

Key to the package is a set of new swing-valve dampers supplied by suspension firm KYB, said to provide more effective bump absorption at low speeds than conventional items. These, said Nissan, provide an improved trade-off between body control and ride comfort.

It rides on new 20in alloy wheels shod with Michelin Pilot Sport EV tyres, measuring 20mm wider than those fitted to other grades of X-Trail. The car’s electric power steering system has also been tweaked to accommodate the new chassis set-up.

The Nismo uses the same four-wheel-drive e-Power hybrid powertrain as is offered in other grades of the X-Trail, with a 1.5-litre petrol engine and two electric motors. The petrol engine does not drive the wheels, but instead acts as a generator for the motors, which produce a combined 201bhp and 243lb ft.

Nissan said it has tuned the car’s four-wheel-drive set-up to send a greater share of the power to the rear wheels. This, it claimed, makes it easier to adjust the X-Trail’s line through a bend using the throttle. 

Visually, the X-Trail is demarcated by a more aggressive bodykit with Nismo’s signature red accents. The new treatment – in particular the chunkier front splitter and rear diffuser – reduces aerodynamic lift by 29% compared with an entry-level X-Trail, said Nissan.

Inside, it also gets the option of more thickly bolstered Recaro bucket seats.

Prices in Japan start from ¥5,416,400 (equivalent to £27,300), compared with ¥3,843,400 (£19,400). 

The Nismo has yet to be confirmed for the UK, but the recent arrival of the Ariya Nismo here suggests it is a likelihood – albeit at a significantly greater cost. The current range-topping model in the UK, the Tekna, is priced from £46,135 when fitted with the four-wheel-drive e-Power system. The Nismo would almost certainly slot into the range above this, possibly nudging the £50,000 mark.

Bronco Roadster Concept Debuts as Bold Tribute to Open-Air Adventure

Bronco Roadster Concept Debuts as Bold Tribute to Open-Air Adventure

A 1966 Bronco in Wimbeldon White inspired this concept on which this modern-day off-roader is based
Putin Gifts Alaskan Ural Owner a New Motorcycle After Viral Interview

Putin Gifts Alaskan Ural Owner a New Motorcycle After Viral Interview

Apparently an interview the already Ural-owning man did with Russian journalists about his bike went viral in the country, prompting the new gift.
Celebrating New Voices Shaping the Future of Automotive Careers

Celebrating New Voices Shaping the Future of Automotive Careers

DOC 2025 1920 x 1080 Screen size smaller file New awards will celebrate rising automotive talent from under-represented backgrounds

There is still time to submit your nominations for the Autocar Drivers of Change: New Talent awards - ahead of entries closing on 10 September.

Held in association with the SMMT, the Drivers of Change awards – returning with a new focus after a successful launch earlier this year – will celebrate individuals who are either apprentices or in the first two years of their career.

The goal of Drivers of Change is to celebrate the automotive industry as a place where you can have a thriving career irrespective of your background and to promote the industry as a great place to work for those from all different backgrounds.

In the second edition of these awards, that can be as simple as having started and made an impact in a first role in the industry - having joined, for example, from a background that is typically under-represented in the industry. We will name the stand-out stars, and the company that is doing the most to support new talent, in a ceremony at Stellantis's UK headquarters in Coventry on 13 November.

We encourage you to spread the word and consider nominating anyone from your wider organisation – no matter which sector of the automotive industry – who meets these broad criteria and has a compelling story to tell. 

Entries are now open - submit your nomination here.

There will be no specific categories in which to enter and anyone named on our list can call themselves an Autocar Driver of Change. Earlier this year, 40 individuals were named in the inaugural Autocar Drivers of Change for their work mainly in DEI initiatives, in a ceremony at the SMMT headquarters in February. 

This forms part of a refreshed calendar of events at Autocar. Each spring we will continue to host Autocar Great Women, which every other year will celebrate Rising Stars. Drivers of Change will follow a similar cadence in this new autumn slot, where it will remain in future years. 

Hyundai and Kia Surge Toward Market Leadership in Saudi Arabia’s Auto Boom

Hyundai and Kia Surge Toward Market Leadership in Saudi Arabia’s Auto Boom

The two Korean brands are shaking up the Saudi market as a new factory and rising sales threaten Toyota’s longtime lead
Passenger Accidentally Ejects From Fighter Jet While Still on the Ground

Passenger Accidentally Ejects From Fighter Jet While Still on the Ground

So it would be super embarrassing if instead you ejected... while still on the ground. That would be very bad and dumb. Whoopsie.
2026 Hyundai Tucson Unveiled with Bold New Design and More Space to Challenge Top Family SUVs

2026 Hyundai Tucson Unveiled with Bold New Design and More Space to Challenge Top...

Hyundai Tucson 2026 Autocar render front quarter static Korean brand aims to steal buyers from key rivals with radically reinvented fifth-generation family SUV

Hyundai is preparing to radically reinvent the Tucson, its best-selling model, giving the family SUV a boxy new look inspired by the larger Santa Fe.

It's expected to go on sale in the latter half of next year, with test mules having been spotted on public roads.

They reveal it will adopt the brand's rugged new ‘Art of Steel’ design language, as seen on the Santa Fe and the hydrogen-powered Nexo.

While both of those models share that design philosophy, they also have their own unique cues – something Hyundai design chief Simon Loasby has previously said was key to making the range like “chess pieces” rather than “Russian dolls”.

The Tucson mules are heavily disguised but it is clear that the new model receives a longer bonnet, chunkier wheel arches and a more upright stance.

The change from fourth to fifth generation looks to mirror that of the Nexo, which Loasby said now has a character that is “much more SUV-like” and “capability-driven”.

Explaining that car’s upgrade, Loasby said: “We deliberately wanted to turn the volume up on the capability and SUV-ness. Pretty much every region in the world has become more comfortable with SUVs and wants [the seating position] to be up.”

The Tucson’s new shape is likely to result in more interior space, too, and could even improve on the current car’s vast 620-litre boot.

2026 Hyundai Tuscon in camo – rear quarter

It will have the brand’s next-generation interior, which Loasby and Hyundai Group design boss Luc Donckerwolke said could result in a smaller infotainment display and simpler software for the touchscreen – as well as more physical buttons – in an effort to improve safety.

Powertrain options are expected to mirror those of the Santa Fe, which is offered with either a 212bhp 1.6-litre turbo petrol hybrid (with front- or four-wheel drive) or a 249bhp plug-in hybrid (four-wheel drive only).

The Tucson is a critical model for Hyundai as it targets further growth in Europe. It has been a major catalyst in the brand's drive to steal sales from established brands such as Volkswagen and BMW, and it last year recorded some 600,000 sales globally.

Vittori Turbio Unveiled: AI-Driven Hypercar Blends Italian Design and Hybrid Power

Vittori Turbio Unveiled: AI-Driven Hypercar Blends Italian Design and Hybrid Power

A new startup called Vittori will introduce a 1,100 hp hypercar this fall