Something rather controversial is stirring behind the scenes as Germany and China team up, making it seem as if national borders and industrial boundaries are no longer defining the automotive world. Mercedes-Benz, the proud symbol of German engineering, is joining forces with China’s Geely to produce the next-generation internal combustion engine for its 2026 CLA. While this pairing does seem rather odd, it represents a seismic shift towards how the future of transportation will be built and gives us an indication of who will build it. The result of the pairing is an engine that was born in China and fine-tuned in Germany that will be powering a Mercedes sedan with a surprising new twist in energy evolution.
The global engine is powered by collaboration
Horse Powertrain Limited is the result of the collaboration between Geely and Renault, which will lead to the 2026 Mercedes-Benz CLA featuring a 2.0-liter turbocharged four-cylinder engine. Although Mercedes showed some of its engineering expertise during development, the main production process of the engine takes place in China. Only the very last emissions components, like the catalytic converter, will be installed in Germany, so it adheres to rather stringent European regulations.
This, however, is not a first for the CLA. Older generations had often relied on diesel engines developed through collaborations with Renault and Nissan. The difference this time, however, is due to the scale and visibility of the partnership. The engine doesn’t seem to be a component tucked away; it’s at the forefront of Mercedes’ marketing of the new model. The powertrain will produce 250 horsepower and 360 Nm of torque whilst including a 48-volt mild-hybrid system that integrates a starter motor into the transmission for greater efficiency.
Geely’s deep involvement with Mercedes-Benz is no coincidence. It must be noted that Li Shufu, CEO of Geely, owns about 10% of Mercedes-Benz parent Daimler. The two companies have collaborated already on Smart EVs; however, their cooperation is spilling over into mainstream combustion-powered models.
Tech is smarter than you think
The new CLA is just as much a software showcase as it is a mechanical showcase. This is where Momenta comes in, a Chinese startup that Mercedes-Benz has backed since 2017. Momenta’s urban assist driving system is said to be installed in the CLA which will be a step forward in autonomous driving technology. While traditional systems rely heavily on pre-loaded high-definition maps, Momenta’s tech adapts in real-time to city environments providing a flexible and future-ready solution.
The quiet power of revolution
Assumably, the CLA’s transformation will stop with hybrid engines and autonomous tech. The car will also be available in a fully electric version built on the MMA (Mercedes Modular Architecture) platform. This version will use an 800-volt electrical system, making ultra-fast charging possible, up to 400 kilometers of range added in just 15 minutes.
Another striking feature is the rear-mounted 175 kW electric motor and a battery pack capable of delivering 750 km (WLTC) of range. This all-electric CLA is energy efficient at just 12 kWh per 100 km, rivaling some of the best EVs on the market, including American rival Tesla, and reinforcing Mercedes-Benz’s commitment to a dual powertrain future: advanced ICE for today and EVs for tomorrow.
The new axis of automotive power
So, what does a Mercedes running on a Chinese-built engine, driven by Chinese software, and electrified through globally sourced tech signify? This shatters old assumptions and signifies evolution. While the idea of “Smerica” (symbolizing a US-led industrial order) being betrayed may be provocative, it’s rooted in truth since automotive innovation is shifting eastward with BYD attacking Tesla in Europe, solidifying this truth.
The Germany and China team up shows the future of the car won’t be written in one country. It’ll be written by countries together.
