Mercedes-Benz will be using the BMW engine developed for the Mini in its next generation of B Class small cars, according to a report in AutoBild, a German motoring magazine. This means that Mercedes likely will not be using engines sourced from Fiat, though Fiat’s CEO, Sergio Marchionne still seemed hopeful that the company would reach a sourcing deal with Mercedes.

The new B Class is due as a 2011 model, replacing both the current B Class and the current A Class with a line up including three and five door sedans, an SUV, a couple and a cabrio version. The news also spikes rumors that the entire B Class platform would be based on a BMW-engineered product, according to AutoBild.
Mercedes declined comment, but Marchionne did not. “The fact that it might have found an agreement with other suppliers does not mean that it is not interested in us," he said. "Mercedes needs a lot of engines, some of them from others and some of them from us."

Ralph Kalal
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