JLR is in trouble. BMW could help.
Currently, BMW and Jaguar Land Rover are collaborating on new drivetrain technologies that will enable significant cost-savings for both automakers. But unlike BMW, which is flush with cash, JLR has been experiencing significant financial difficulties which resulted in major cost-cutting measures, such as a workforce reduction and scrapping the limited edition Range Rover SV Coupe. It hasn't been a pleasant experience, but there is light at the end of the tunnel. Just last week, we reported about the growing possibility of yet another major automaker partnership, this time between BMW and JLR. The PSA-FCA merger appears to be going as planned, and Volkswagen and Ford signed a collaboration agreement earlier this year. Could BMW and JLR be next?
Auto Express has a fresh report about what BMW's newly minted CEO, Oliver Zipse, has to say on the subject. While he didn't admit to anything outright, there's a fairly good chance talks are taking place behind the scenes.
"With Jaguar Land Rover, we have announced cooperation on the electric drivetrain and that's running very well. We have another cooperation with them on internal combustion engines. Anything else is the future. There's no decision on it and I wouldn't comment on something that has not been decided," Zipse stated. "Cooperation and working together is the new normal," he added. "It's not only with drivetrains. We also have arrangements with a lot of other component manufacturers, where we go far beyond the normal supply chain."
One thing BMW does not need, at least for now, is a standalone electric vehicle platform. You see, its two current platforms, CLAR and FAAR, can support gasoline, diesel, plug-in hybrid and all-electric vehicles. VW, for example, has built its own standalone EV setup. JLR also has its own, which underpins the Jaguar I-Pace and, in the near future, the next-generation XJ sedan.
Question is, what additional areas can BMW and JLR collaborate on? Zipse was careful not to disclose any specifics, but one is for certain: they're talking.