BMW Group And Jaguar Land Rover To Collaborate On EV Tech

Jaguar Land Rover will be allowed to use BMW’s “Gen 5” eDrive technology in its future plug-ins.

BMW Group and Jaguar Land Rover announced today an important partnership and joint development of the next-generation of electrification technology.

The collaboration will be focused on the next generation electric drive units (including electric motors, transmissions and power electronics), using BMW’s fifth generation “Gen 5” eDrive technology (for BEVs and PHEVs) as a base.

According to the press release, a joint team will develop the Gen 5 power units, although the actual production will be done separately (in the case of JLR at its Wolverhampton-based Engine Manufacturing Centre in the UK, and in case of BMW in Germany).

“A joint team of BMW Group and Jaguar Land Rover experts located in Munich will be tasked with further developing the Gen 5 power units with production of the electric drivetrains to be undertaken by each partner in their own manufacturing facilities. Both companies will seek to adhere to their own brand-specific propositions in any project.”

“A team of Jaguar Land Rover and BMW Group experts will engineer the EDUs with both partners developing the systems to deliver the specific characteristics required for their respective range of products.”

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Besides sharing R&D costs, the partners intend to save on joint production planning as well as economies of scale from joint procurement across the supply chain.

From our perspective, it seems that the costs of plug-in technology (and some other things) are so high that especially combined with decreasing car sales or margins, this will trigger many new alliances.

The deal with JLR should bring some life to BMW Group, while in case of JLR (recently hit by huge losses) it could be a big leap and maybe the only chance for it to develop a modern lineup of plug-in cars.

The first models with Gen 5 drive unit – BMW iX3 – should be ready in 2020.

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