BMW And Jaguar Land Rover Reportedly Reach New Engine Deal

Mergers, alliances, tie-ups, co-operations: whatever form they take, it’s undeniable that more and more manufacturers get to bed together in order to develop new tech much more cost effectively – and the latest pair seem to be BMW and Jaguar Land Rover.

Citing company insiders, Autocar is reporting the automakers have agreed to expand their recent electric vehicle partnership to include an assortment of engines including petrol, diesel and hybrid variants. These are said to include four- and six-cylinder units, with and without electrification.

The move could be a win-win for the automakers as it will allow Jaguar Land Rover to cut back on costs related to the research and development of internal combustion engines as the company increasing looks towards an electric future. BMW, on the other hand, would benefit from sales of their engines and the increased volumes that would result from it.

Also Read: BMW And JLR To Co-Develop Next-Generation Electric Drive Units

Nothing is official at this point, but the (rumored) deal comes at a time when Jaguar Land Rover is under pressure to cut costs following a significant sales decline. Year-to-date sales are off 11.6 from last year and the company posted a pre-tax loss of £3.4 ($4.2 / €3.8) billion in the final quarter of 2018.

There’s no word on when the rumored agreement could be announced, but the electric vehicle partnership was revealed in June and called for the two companies to work together on next-generation electric drive units. Under the terms of the deal, BMW’s Gen 5 drive unit, which features an electric motor, transmission and electronics in a single housing, would form the basis for future electric powertrains developed with Jaguar Land Rover.

At the time, the companies said the agreement would allow them to “to take advantage of cost efficiencies arising from shared development of future” electric powertrains as well as reduce production planning costs and increase economies of scale.

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