Electric Car Technology To Be Jointly Developed By JLR And BMW To Save Costs

Electric car technologies would be jointly developed by BMW and Jaguar Land Rover as the two car makers have decided to use their resources together. Electric motors, transmissions and power electronics would be jointly developed by them, announced the two car giants.

Amidst a business environment of dropping sale of cars and increasing costs of operation as well as the need to invest heavily in development of technologies and platforms for electric and other future looking technologies, both the car makers have found it hard to maintain their levels of profit margin that they enjoyed earlier. their

There is increasing pressure on car maker all around the world from regulators to develop and manufacture vehicles with low emissions so that they are able to adhere to the ever stringent emission and anti pollution norms and regulations. This is causing firms to invest heavily in low emission technology development such as those for electric powered vehicles.

This trend in the global car industry has forced a tide of similar tie ups between companies aimed at reducing costs by sharing them, especially for the development of new technologies for electric cars.

For example, United States Ford and Germany’s Volkswagen announced tie up for development of new vehicles. On the other hand, a $35bn merger for the same reasons is being contemplated and evaluated by rivals FiatChrysler and Renault.

“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.

Sharing the costs of research and production planning, and through buying electric car components together area the ways that BMW and Jaguar Land Rover would be creating synergies to reduce costs of operations, the two companies said.

An electric motor, transmission and power electronics are currently being developed by BMW in one of its facilities that it calls “Gen 5” of its “eDrive” technology. BMW said that this Gen 5 technology would be further developed by a joint team of engineers and experts from BMW and JLR in Munich, following which their own electric drivetrains would be produced by both the companies separately. JLR will produce these drivetrains at its Wolverhampton plant, which employs 1,600 people

Earlier in February this year, BMW also entered into a joint venture with its German rival Daimler which would see the two firms jointly developing new-generation services such as driverless vehicles, ride-hailing, and pay-per-use cars. Back then, the companies had announced investments of €1 billion jointly in the project which would also help in the development of technologies that would aid drivers to find parking and electric charge points. That service technology oriented partnership between the otherwise fierce competitors was struck to counter similar service being developed by mobility services providers such as Uber and other technology companies.

“Further co-operation with other providers, including stakes in start-ups and established players, are also a possible option,” Daimler’s chief executive Dieter Zetsche had said back then about the partnership.

(Adapted from BBC.com)

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