The origins of the Cosworth engines designed by
Mike Hall were Mercedes plans to run Group B Rally cars based on the W201 which would develop 320 bhp.
Altho the rally car project was cancelled the high power engine design would re-emerge in the DTM racing saloons.
After the great prelaunch publicity of the 3 record breaking cars at the Nardo track in Italy full production of the 2.3-16v would not develop till about a year later due to what was described as "quality issues" with the cylinder heads.
Cosworth had developed a special thin wall casting technique for the alloy heads so the heads were cast at their new Worcester factory, but all the auxiliary hardware was supplied by MB and machining and final assembly shared between the 2 companies. Further delays for the RHD market occurred when the tubular exhaust manifold had to be re-designed to clear the steering gear.
The original 5,000 cars were built at Sindelfingen but in May 1984 production was transferred to Bremen. My guess-and its only that- is that Cosworth did the head casting and Mercedes took over most of the machining as model demand grew and Cosworth couldn't cope with the volume required.
In answer to your question all the 16v engines 2.3,2.5 and EVO were based on the original Cosworth group B rally engine design with detail modifications to improve power/ reliability-probably from Mercedes.
Whether Cosworth were involved in any way in the
production of the 2.5-16v engine I don't know?
Maybe Mercedes had worked out the cylinder head casting technique by that time?
I would imagine the Mercedes engineering ethos of that time would spur them to control all aspects of engine production if at all possible.
They still "farmed out" special limited production models to other companies like the 500E to Porsche's Zuffenhausen plant at that time so who knows??
Courtesy of James Taylors excellent collectors guide Mecedes Benz VOL 4 the 1980'S 190,200-320 and S class --alas, at present out of print I believe.
http://www.amazon.co.uk/Mercedes-Be...ooks&qid=1212397230&sr=1-5&tag=amazon0e9db-21