The recently agreed alliance between Jaguar Land Rover and BMW is set to be extended to include internal combustion engines, a source with knowledge of recent high-level discussions between the two car makers has told Autocar.
The two firms initially agreed to work together on the development of electrified powertrains, but according to sources they have now agreed terms on what is described as a “more far-reaching deal involving petrol, diesel and hybridised drivelines” for a wide range of models.
According to Autocar’s sources, BMW is to supply Jaguar Land Rover with internal combustion engines, including in-line four- and six-cylinder units “both with and without electrically-assisted hybrid functions”.
The move is said to be aimed at allowing Jaguar Land Rover to reduce its on-going investment in petrol, diesel and hybrid drivelines and instead focus its research and development spending on the electric drivelines in partnership with BMW.
For BMW the deal safeguards existing research and development, procurement and production operations by adding volume beyond its own brands, BMW, Mini and Rolls-Royce.
News of the internal combustion engine deal being forged by Jaguar Land Rover and BMW comes at a time when regulatory authorities in key global markets are raising emission standards with particular focus on CO2 and NOx levels to combat air pollution. Thus raising the level of spending required to engineer petrol, diesel and hybrid drivelines.
By joining forces on both electric and internal combustion engine drivelines, Jaguar Land Rover and BMW hope to reap the rewards of increased economies of scale while sharing development costs to remain competitive.
Last month the two companies announced they would jointly invest in research and development, engineering and procurement of drivelines for volume production electric cars.