Markus Schaefer, chief technology officer at Mercedes-Benz , has denied reports the automaker plans to use four-cylinder engines from luxury rival BMW .

Reports emerged from Europe at the end of August indicating Mercedes-Benz was in high level talks with BMW to use its next-generation 2.0-litre four-cylinder engine.

The BMW engine was to reportedly serve as a replacement for the 1.5-litre turbocharged four-cylinder used in the CLA, GLA and GLB. It would also be employed in plug-in hybrid variants of the C- and E-Class lineups.

Under this plan, the first BMW engines would then start entering the Mercedes-Benz in 2027, and would help both companies to reduce development costs and improve economies of scale at a time when all legacy automakers are grappling with how to approach elect

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