BMW and JLR partner for electric motor development
German carmaker BMW and British group Jaguar Land Rover (JLR) have announced a new partnership for the development of electric motors. They will share development cost, but each partner will build their motors in their own production unit.
BMW knows that developing new technologies isn’t cheap or easy. That’s why the Bavarian carmaker is reaching out to its competitors. It has joined forces with Daimler for the development of self-driving technologies and mobility services. BMW also collaborates with Northvolt and Umicore to create a EU battery supply chain.
“Cooperation between car manufacturers to share know-how and resources is important as the automotive industry tackles the significant challenges of autonomous driving, connectivity, electrification, and services”, reads BMW’s press release.
Both brands have announced their new partnership for the development of their future electric drive units. “The automotive industry is undergoing a thorough transformation. We see collaboration as a key to success, also in the field of electrification. With Jaguar Land Rover, we found a partner whose requirement for the future generation of electric drive units significantly matches ours”, said Klaus Fröhlich, Member of the Board of Management of BMW AG.
Economy of scale
The two manufacturers are aiming for the same goal: economy of scale. They will share development costs but each partner will build the motors on its production site.
JLR, a subsidiary of Indian Tata, has recently announced a restructuring plan to cut 2,5 billion pounds. This will allow EV investment at the cost of 4.500 jobs, or 10% of its workforce. BMW, for its part, wants to spare 12 billion euro by 2022.