Jaguar Land Rover and Germany’s BMW made an announcement today that they will be collaborating on developing electric cars. The new collaboration sees Jaguar Land Rover and BMW reunite to unveil an industry alliance to lower the cost of developing electric cars.
Despite the firms being rivals, they will be working together to share the cost of developing the next gen of Electric Drive Units (EDUs). The two carmakers have already taken steps towards car electrification, but this new merger will allow them to accelerate the process.
The two car giants will be under pressure to manufacture zero-emission cars that reduce pollution, while still being able to maintain good profit margins, bearing in mind the high cost of making electric and autonomous cars.
Jaguar Land Rover has already demonstrated its ability to develop electric cars through their Jaguar I-Pace – the world’s first premium battery-electric SUV to market.
On its inception, the I-Pace was greatly received by the market, as shown by the three World Car of the Year Awards that it recently received.
This shows that Jaguar Land Rover is up for the task. Nick Rogers, Jaguar Land Rover’s head of engineering said, “The pace of change and consumer interest in electrified vehicles is gathering real momentum and it’s essential we work across the industry to advance the technologies required to deliver this exciting feature.”
On their part, BMW have vast experience in developing several generations of EDUs since they launched the BMW i3 back in 2013.
According to BMW board management Klaus Frohlich, “The automotive industry is undergoing a steep transformation and we see this collaboration as a key for success, also in the field of electrification.”
The race towards electric cars is forcing auto manufacturers to work together with rivals and even forge partnerships with tech companies.
Apart from this merge between Jaguar Land Rover and BMW, Daimler and BMW have already combined efforts to merge Car2Go and DriveNow platforms, and want to collaborate on autonomous cars.
Like its competitors, BMW is investing billions of money into developing electric cars. Their CEO Harald Krueger stated this year that they aim to have 500,000 electric and plug-in hybrids on the roads by the end of the year.