Jaguar Land Rover and BMW are going into a partnership that will enable them to contribute to the electric car industry.
Recently, both automakers have been struggling in the auto industry. The higher cost of car manufacturing and falling sales contribute significantly to their problems.
It is also mandatory for car firms to make vehicles with low emission as a way to curb pollution, according to the anti-pollution rules. This also puts pressure on the car companies and also eats deep into their profits.
While commenting on the proposed partnership, Klaus Froehlich, BMW board member said:
“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.”
The automakers have mapped out cost-cutting strategies that will increase their chances of making profits from their partnership.
They intend to share research cost, acquire electric car components together, and thereby plan production together as well.
BMW has been in the business of transmission, electric, power electronics and other related devices in “Gen 5,” a part of its “eDrive” technology.
As per BMW, a team of engineers from duo companies, presently are working in Munich to upgrade the Gen 5 technology that will enable each company to produce its drivetrains.
The huge cost of production is the primary reason why car manufacturers are forming a partnership. They hope to reduce the huge cost of electric parts and production cost by sharing the production expenses.