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BMW to supply engines to Mercedes?

Reports suggest Mercedes will source a 2.0 litre gasoline engine from BMW. Ian Henry looks at what's behind this development

As the automotive industry has poured more resources into the development of electric vehicles (EVs) and a new supply chain for motors and batteries, it has subsequently had less time and money for internal combustion engines (ICE). For Mercedes, maintaining its own appropriately-sized engines was becoming increasingly difficult from a financial and engineering perspective. Volumes of its smaller models are also declining, and the company has decided to dispense with A-class, although it has since decided to keep the current model for a year or two longer than originally planned.

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