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Iconic German brand looks to China for engines: How Geely will help the 2026 Mercedes-Benz CLA-class challenge the BMW 2 Series Gran Coupe and Audi A3 as well as Tesla Model 3 and Polestar 2: Report

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2023 Mercedes-Benz Concept CLA
John Law
Deputy News Editor
30 Oct 2024
3 min read

Mercedes-Benz and, more specifically, its AMG department, are well known for producing excellent engines, so why is the German marque looking to China for new powertrains?

Expected to debut next year using a new modular ‘MMA’ platform allowing mild-hybrid and battery electric variations, the 2026 Mercedes-Benz CLA-Class liftback is likely to adopt a Geely and Renault 2.0-litre turbo engine, according to CarNewsChina

Currently an entry-point into Mercedes-Benz range, the new generation BMW 2 Series Gran Coupe and Audi A3 competitor has the potential to put Mercedes-Benz back on track with an exciting and modern product to tempt Tesla Model 3 and Polestar 2 owners. It could be a similar turning point as the ‘W201’ 190E ushered in at its 1982 release.

The reported Horse engine won't be the first time Mercedes has looked elsewhere for motivation, with the current A200 hatch powered by a Renault-sourced 1.3-litre turbo-petrol four-cylinder.

Despite the new engine being reported as a Chinese one, it will continue Mercedes' Renault partnership, too, as it’s to come from Horse Powertrain Limited, a joint venture between the French brand and Chinese automotive giant Geely. 

Horse was set up in May 2024 with the companies collaborating on new engines, giving Geely a leg into Korea via Renault’s tie-in with Samsung as well as aiding the French marque’s fortunes in China. It is entirely separate from Renault’s alliance with Mitsubishi and Nissan. 

2023 Mercedes-Benz Concept CLA
2023 Mercedes-Benz Concept CLA

The CLA’s engine will reportedly be built in China with final assembly, including required catalytic/petrol particulate filters, installed in Germany. 

New information has come to light recently, though Geely and Mercedes-Benz have been working together n project since 2020, according to Forbes.

The new 2.0-litre will include mild-hybrid assistance via a gearbox mounted starter generator with peak power listed at 186kW. For reference, Benz’s current in-house ‘M260’ 2.0-litre turbo produces 165kW in the CLA 250 and 225kW in the AMG CLA 35. 

2026 Mercedes-Benz CLA Teaser
2026 Mercedes-Benz CLA Teaser

The flagship AMG CLA 45 uses Mercedes-AMG’s hand-assembled ‘M139’ four-cylinder producing 310kW.

There is more Chinese technology bound for the CLA, including the adaptive driver assistance systems. These will be powered by technology from Momenta, a company in which Mercedes-Benz holds a stake. 

Along with Mercedes-Benz, Geely is also a 50 per cent owner of the Smart brand which has recently relaunched in Australia with the #1 and #3 electric cars. 

2026 Mercedes-Benz CLA Teaser
2026 Mercedes-Benz CLA Teaser

The CLA’s MMA platform also supports battery electric running so, alongside the mild-hybrid model, it’s expected an 82kWh battery helped by 800-volt electricals, low drag body and efficient motors will deliver a Tesla Model 3-beating 750km of WLTP-rated driving range. 

Additionally, it will be able to add 400km of driving range in 15 minutes at a 250kW fast-charging pylon. 

More details of the third generation CLA-Class, as previewed by the Concept CLA at the 2023 Munich Motor Show and teased again this month, will be revealed soon.

John Law
Deputy News Editor
Born in Sydney’s Inner West, John wasn’t treated to the usual suite of Aussie-built family cars growing up, with his parents choosing quirky (often chevroned) French motors that shaped his love of cars. The call of motoring journalism was too strong to deny and in 2019 John kickstarted his career at Chasing Cars. A move to WhichCar and Wheels magazine exposed him to a different side of the industry and the glossy pages of physical magazines. John is back on the digital side of things at CarsGuide, where he’s taken up a role as Deputy News Editor spinning yarns about the latest happenings in the automotive industry. When he isn’t working, John can be found tooling around in either his 2002 Renault Clio Sport 172 or 1983 Alfasud Gold Cloverleaf.  
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