Two firms will co-develop electric drive units in a bid to lower the cost of developing EVs

Jaguar Land Rover and BMW have announced they will collaborate on the development of next-generation technology for electric and plug-in hybrid vehicles.

The two firms will jointly develop electric drive systems, otherwise known as EDUs, in a move which Jaguar Land Rover and BMW hope will significantly lower the cost of development in an area of growth that has been incredibly costly to car makers in recent years.

This new alliance is one of many currently underway in the industry as manufacturers seek to make electrified vehicles more profitable. Most recently, Ford announced a $500m investment in EV start-up Rivian.

No timeframe has been given for when the first fruits of the collaboration will be seen, but it’s likely to be in the next three to four years. Similarly, no volume expectations have been announced but given the need for economies of scale, it is set to be substantial. 

BMW board member for R&D, Klaus Fröhlich, commented: “The automotive industry is undergoing a steep transformation. We see collaboration as a key for success, also in the field of electrification. With Jaguar Land Rover, we found a partner whose requirements for the future generation of electric drive units significantly match ours. Together, we have the opportunity to cater more effectively for customer needs by shortening development time and bringing vehicles and state-of-the-art technologies more rapidly to market.”

Nick Rogers, Jaguar Land Rover engineering director added: “We’ve proven we can build world beating electric cars but now we need to scale the technology to support the next generation of Jaguar and Land Rover products. It was clear from discussions with BMW Group that both companies’ requirements for next generation EDUs to support this transition have significant overlap making for a mutually beneficial collaboration.”

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Both firms are ramping up their electrified line-ups. Jaguar Land Rover will launch a plug-in hybrid Evoque and Discovery Sport in the next 12 months, while BMW will introduce the electric iX3 next year, closely followed by the i4, an electric equivalent to the 3 Series. 

The announcement comes just weeks after Jaguar Land Rover reported a £3.6 billion loss over its financial year amid persistent rumours of a possible takeover by PSA Group, a deal which has yet to be confirmed.

The collaboration, which includes joint investment in research and development, engineering and procurement stems from both the success of Jaguar’s electric I-Pace and BMW’s long-established expertise, having built EDUs in-house since it launched the i3 in 2013. BMW said the firms "share the same strategic vision of environmentally-friendly and future-oriented electric drive technologies". 

Jaguar Land Rover and BMW will work together, at BMW's HQ in Munich, to develop the EDUs with both developing systems to “deliver the specific characteristics required for their respective range of products,” said JLR's statement. 

The EDUs will be made by JLR and BMW at their respective plants. For JLR, this will be the Engine Manufacturing Centre in Wolverhampton, which was confirmed as the home of the firm’s global EDU production earlier this year. 

BMW has not yet disclosed where it will build its EDUs, but there has been widespread reports that BMW is expanding its manufacturing base in Hams Hall, in the Midlands, which would mean it was in close proximity to JLR’s facility.

The financial terms of the deal will not be disclosed.

Jaguar Land Rover said the move supports “the advancement of electrification technologies, a central part of the automotive industry’s transition to an ACES (Autonomous, Connected, Electric, Shared) future”.

This is not the first meeting of Jaguar Land Rover and BMW. In 1994, BMW bought Land Rover but had limited successs so sold it to Ford in 2000. Ford later sold the brand to Tata Motors in 2008. 

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Comments
23

5 June 2019

For all those dying to see JLR fail and fall under the wheel of the PSA group

5 June 2019

Turns out they might survive after all

5 June 2019
JMax18 wrote:

Turns out they might survive after all

Things aren't that bad at BMW are they?

5 June 2019
xxxx wrote:

For all those dying to see JLR fail and fall under the wheel of the PSA group

they will be fine, be it independent or part of a bigger group. Honda would make more sense as a partner then BMW and definately more then crappy PSA.

5 June 2019
GODFATHER wrote:

xxxx wrote:

For all those dying to see JLR fail and fall under the wheel of the PSA group

they will be fine, be it independent or part of a bigger group. Honda would make more sense as a partner then BMW and definately more then crappy PSA.

Hard to believe some posters were desperate to see JLR fail, be sold off cheap to PSA and see british workers at the job centre

5 June 2019
xxxx wrote:

For all those dying to see JLR fail and fall under the wheel of the PSA group

Can you read between lines? - It's extremely useful for understanding what events mean in the auto industry.

JLR, instead of striving ahead with their "lead" on EVs are pairing with BMW - sharing their technology ideas in return for funding. A desperate grab. But, a grab that makes them more attractive to any future suiter.

Similarly their multi-billion write down, was part of dressing for sale.

.

This news, if anything, makes it seem more likely a sale is imminent.

5 June 2019
CarNut170 wrote:

xxxx wrote:

For all those dying to see JLR fail and fall under the wheel of the PSA group

Can you read between lines? - It's extremely useful for understanding what events mean in the auto industry.

JLR, instead of striving ahead with their "lead" on EVs are pairing with BMW - sharing their technology ideas in return for funding. A desperate grab. But, a grab that makes them more attractive to any future suiter.

Similarly their multi-billion write down, was part of dressing for sale.

.

This news, if anything, makes it seem more likely a sale is imminent.

And you were one of the worst offenders of hoping for a JLR downfall.

e.g April 2019 you wrote the following:

A denial from Tata, and a coy "we're considering" from Peugeot. It doesn't get much more definitive than that. JLR are soon to be speaking French.

5 June 2019

Sensible collaboration

5 June 2019

There are a number of reasons I wouldn’t bet against BMW trying to buy JLR. Basically it’s Rover without the few weight and all of the upsides.

5 June 2019
TStag wrote:

There are a number of reasons I wouldn’t bet against BMW trying to buy JLR. Basically it’s Rover without the few weight and all of the upsides.

I could becuase of the CMA (competition market authority).

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