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BMW and Jaguar Land Rover to jointly develop electric car tech

FRANKFURT – BMW and Jaguar Land Rover on Wednesday said they will jointly develop electric motors, transmissions and power electronics, unveiling yet another industry alliance designed to lower the costs of developing electric cars. Both carmakers are under pressure to roll out zero-emission vehicles to meet stringent anti-pollution rules, but have struggled to maintain profit margins faced with the rising costs of making electric, connected and autonomous cars. "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," said BMW board member Klaus Froehlich. BMW and Jaguar Land Rover said they will save costs through shared development, production planning and joint purchasing of electric car components. Both companies will produce electric drivetrains in their own manufacturing facilities, BMW said. The BMW Jaguar Land Rover pact comes as rivals FiatChrysler and Renault explore a $35 billion tie-up of the Italian-American and French carmaking groups. Nick Rogers, Jaguar Land Rover's engineering director said, "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." BMW was in talks with rival Daimler about developing electric car components but was also in discussions with Jaguar Land Rover, a company it once owned, to explore an alliance on engines. BMW already has a deal to supply an 8 cylinder engine to Jaguar Land Rover. Carmakers are increasingly open to sharing electric car parts because the technology is expensive and because customers no longer buy a car based on what engine a vehicle has. "Carmakers are much less precious about sharing electric car technology because it is much harder to create product differentiation with electric car tech. They all accelerate fast, and everybody can do quality and ride and handling," according to Carl-Peter Forster a former chief executive of Tata Motors and a former BMW executive. Jaguar Land Rover is still run by former BMW managers, including Ralf Speth the company's chief executive who spent 20 years at BMW prior to joining JLR, and Wolfgang Ziebart, the engineer who oversaw Jaguar's I-Pace electric car program, who is a former head of research and development at BMW.

BMW wants to build electric SUV in the US

Tesla needs to watch its back. The all-electric Model X hasn't even hit the market yet and already, luxury competitors are gearing up to combat it. Audi is prepping an all-electric concept for Frankfurt that previews a Model X-fighting CUV, and now BMW is allegedly prepping a third member of its i sub-brand, in the form of an American-built, all-electric crossover. Germany's Wirtschaftswoche claims the plan is awaiting board approval for production in Spartanburg, where BMW already builds the entirety of its X lineup. BMW, for its part, has told Automotive News Europe that the report is simply "speculation." Speculation or no, we agree with Evercore ISI analyst Arndt Ellinghorst, who told Automotive News that adding a crossover to the i family is a logical move. "In our view an iSUV makes perfect sense for BMW. SUVs are in demand and given the market's reaction to Tesla's Model X so far, it seems to be a good fit for families and suburban commuters." While Audi is preparing to offer its Model X fighter by 2018, though, Ellinghorst told AN not to expect BMW's entry to the segment before then.

Hyundai, BMW in plant talks with Mexican officials

BMW and Hyundai may be joining the rush for the border that has already seen Nissan, Honda and Mazda begin factory construction in Mexico, while Ford and General Motors have both made significant investments in their Mexican facilities. BMW's interest in Mexico has been apparent for some time, and while we'd heard grumblings about Hyundai's move into Latin America some time ago, the last we heard about it was in 2009.
This new move, reported by Bloomberg, doesn't get specific on which models will be produced south of the Rio Grande, and as neither automakers' spokespeople responded to the business site's request for statements, all we really have to go on are the statements of Mexico's Economy Minister, Ildefonso Guajardo: "I cannot talk for them, but I think that starting 2014 we'll have new announcements. At least for one." Which manufacturer that will be remains anyone's guess, although judging by all the recent scuttlebutt that's been going around, the smart money seems to be on BMW. We'll stay with this one.