And what could the ramifications be?
As the second decade of the 21st century comes to an end, we're seeing automakers, some once sworn enemies, suddenly racing to join forces, whether it being through mergers or partnerships. The reasons for doing so make for smart business as the auto industry as a whole undergoes radical changes due to the rise of electric vehicles, autonomous driving, and a host of other new technologies. Finding common interest(s) for co-development of these technologies can save billions of dollars. One of the more interesting partnerships as of late is the one between BMW and Jaguar, which was first reported last month. This new alliance will see the pair jointly develop electric motors, transmissions, and power electronics as part of an effort to reduce costs.
And now Autocar has a very interesting update: the two companies have now agreed to a "more far-reaching deal involving petrol (gasoline) diesel, and hybridized drivelines" for a range of vehicles.
In other words, BMW and JLR are set to co-develop internal combustion engines. Sources claim BMW will supply JLR with internal combustion engines, including inline-four and six-cylinder units "both with and without electrically-assisted hybrid functions." Some future Jaguars and Land Rovers will come powered by BMW engines? Indeed, though neither automaker has officially confirmed the news. But what's in it for BMW? This deal essentially safeguards existing research and development investments and production operations for these engines by adding volume.
BMW will now get more for its already invested money by selling these engines. As for JLR's benefit, it will gain access to engines that have already received approval by regulatory authorities in major global markets in regards to emissions standards. Instead of re-engineering many of its existing internal combustion and diesel engines, JLR can also continue to focus R&D efforts and spending on electrification. It's a win-win deal for both companies.