With BMW cleaning up International Engine of the Year awards in several categories, and for several years, it makes sense to profit from its experience in this field.
BMW’s head of development, Klaus Draeger, has been reported as saying that BMW is moving forward with plans to sell its engines to Mercedes, as well as other brands.
“We are ready in principle to sell our engines to a competitor. And yes, we are talking openly with Mercedes about several possibilities,” Draeger said.
Aston Martin was also another name specifically mentioned in discussion. BMW's V12 is said to be one of the first engines to make the transition across brands.
If the components are the right price, it would make sense for Merc (and others) to take on the engines and concentrate on other areas of its cars.