Mercedes Denies BMW Engine Swap: FAME Engines Keep Rivalry Intact

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Mercedes Denies BMW Engine Swap: FAME Engines Keep Rivalry Intact

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Mercedes-Benz rejects reports of using BMW's B48 engine

At the IAA Mobility Show in Munich, Markus Schäfer, Mercedes‑Benz Chief Technology Officer and member of the Board of Management, was unequivocal: "There is no truth to this." He reiterated that Mercedes has developed its own Family of Modular Engines (FAME), covering multiple displacements and engineered to meet EU7, China 7 and U.S. regulatory demands.

What Mercedes' FAME architecture means

Modular design and emissions compliance

FAME is Mercedes' in‑house modular engine architecture. It spans four‑, six‑, eight‑ and even twelve‑cylinder configurations and is designed for gasoline, mild‑hybrid and potential plug‑in hybrid applications. The platform's stated goal is full compliance with upcoming Euro 7 emissions rules and other global standards, eliminating the necessity to rely on external internal combustion engine (ICE) suppliers.

Performance and specifications

While BMW's B48 2.0‑liter four is a proven turbocharged unit (commonly producing between roughly 180–260 hp depending on tune and application) and meets strict emissions targets across BMW's lineup, Mercedes' FAME strategy focuses on delivering engines across the performance spectrum — from efficient small‑capacity mills for compact cars to high‑output V8 and V12 units for flagship models. "We will continue to offer V‑12s and also V‑8s," Schäfer told Motor1, underlining Mercedes' commitment to retain in‑house high‑performance powertrains.

Why a BMW engine would have made sense on paper — and why Mercedes said no

On the surface, sharing BMW's B48 could have offered Mercedes savings in development costs and an easy path to Euro 7 certification for compact models such as the CLA, GLA, C‑Class and E‑Class. The rumor also mentioned a potential joint assembly facility in the United States to skirt import tariffs.

However, Mercedes' track record of co‑development (for example, the 1.5‑liter four developed with partners including Geely and the earlier 1.33‑liter collaboration with the Renault‑Nissan‑Mitsubishi Alliance) does not necessarily signal a shift toward sourcing core engines from a direct rival. Mercedes' FAME program and its clear public denial leave little room for an engine trade with BMW.

Design, performance and product positioning

Mercedes intends to position future models with distinct mechanical identity: combustion variants will coexist with electrified EQ models in a dual strategy. The new GLC will be offered in both gasoline and electric variants at similar price points — a clear example of market positioning that preserves choice for buyers unwilling or unable to go full EV.

Performance remains a pillar of brand differentiation: AMG and high‑end Mercedes models will continue to rely on dedicated V8 and V12 engines where required, while compact and mid‑range cars will use optimized four‑ and six‑cylinder FAME units with hybrid assistance where appropriate. This allows Mercedes to maintain engineering independence and brand‑specific powertrain characteristics.

Market context and strategy

The denial arrives amid a volatile EV market. Mercedes paused new U.S. orders and deliveries for the EQE and EQS (sedan and SUV) starting September 1, 2025, citing slow demand, high dealer inventory and the impending U.S. federal EV tax credit deadline. The EQB remains available.

This pause highlights the balancing act Mercedes faces: accelerating electrification while keeping combustion engines viable and compliant. By investing in the FAME modular engine family, Mercedes is signaling that combustion technology — enhanced by hybridization — will remain part of its global portfolio alongside EQ electric models.

Comparison: in‑house engines vs. outsourcing

Outsourcing an engine like BMW's B48 could reduce immediate development costs and speed compliance with strict emissions rules. But it risks diluting brand identity and long‑term engineering control. Mercedes' approach prioritizes proprietary engineering, platform flexibility (FAME), and the capacity to tune powertrains to brand expectations — factors that resonate with enthusiasts and support premium positioning.

Bottom line for enthusiasts

For now, Mercedes‑badged cars will keep Mercedes engines. The rivalry between Stuttgart and Munich remains intact, preserving distinct engineering philosophies and ensuring both BMW and Mercedes continue to deliver products with unique performance, sound, and driving character. The industry will watch how Mercedes balances FAME‑based combustion powertrains with its expanding EQ electric range in the years ahead.

Source: autoevolution

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