Last month, a report from Germany suggested BMW and Mercedes were exploring an engine and transmission sharing partnership. Mercedes was said to be looking to get four-cylinders from BMW as part of an effort to reduce costs as the brand adopts a more gradual transition to electric vehicles.

The first BMW-powered Mercedes was rumored to arrive as early as 2027 and a second report seemingly confirmed that high-level discussions had indeed taken place. The latter suggested the company was interested in BMW’s turbocharged 2.0-liter four-cylinder, which is used in an assortment of different vehicles.

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However, Mercedes has now shot down those rumors. Speaking with the Italian Motor1 at the Munich Motor Show, Mercedes Chief Technology Officer Markus Schaefer said, “There is no truth to this.” He went on to say, “We have developed our own new family of modular engines, the FAME (Family of Modular Engines), which covers all displacements and is already ready to meet EU7, China 7 and US regulations.”

In effect, Schaefer is saying the company doesn’t need BMW’s help because they have a four-cylinder of their own. It’s used in the new CLA and will eventually spread to other models based on the MMA platform.

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In the case of the M 252, the turbocharged 1.5-liter four-cylinder engine is paired to an eight-speed dual-clutch transmission with an integrated electric motor. The hybrid also has a 48-volt lithium-ion battery with a capacity of up to 1.3 kWh. In the United States, it will have an output of 188 hp (140 kW / 190 PS).