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BMW, Jaguar Land Rover To Jointly Develop Next Generation Electric Drive Unit

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Auto giants BMW Group (BMW.L,BAMXF.PK,BAMXY.PK) and Jaguar Land Rover said Wednesday that they will jointly develop electric drive units for the next generation of electric vehicles.

The companies will collaborate on developing electric motors, transmissions and power electronics.

Nowadays, automakers tend to form alliances to lower the huge costs of developing electric cars amid increasingly tough regulations to safeguard the environment.

BMW and Jaguar Land Rover said they will take advantage of cost efficiencies arising from shared development, production planning costs, as well as economies of scale from joint purchasing.

BMW has the expertise in developing and producing several generations of electric drive units in-house since it launched the BMW i3 in 2013.

On its part, Jaguar Land Rover, owned by India's Tata Motors Ltd. (TTM), has demonstrated its capability through the launch of its first all-electric car, the Jaguar I-Pace, and its plug-in hybrid models.

BMW is currently developing an electric motor, transmission and power electronics in one housing. According to the automaker, this electric motor does not require rare earths, making it easier for the company to continue to broaden its range of electrified models.

Starting next year, BMW will introduce this electric drive unit, which it calls the fifth generation or Gen 5 of its eDrive technology, with the BMW iX3 Sports Activity Vehicle.

A joint team of BMW and Jaguar Land Rover engineers located in Munich will work on further developing the Gen 5 power units. Both companies will produce the electric drivetrains in their own manufacturing facilities.

Among others in the industry, auto giants Volkswagen AG (VKW.L, VLKAF.PK, VOW.BE) and Ford Motor Co. (F) in January had decided to jointly develop commercial vans, medium-sized pickups and electric vehicles for global markets.

In June 2018, General Motors Co. (GM) and Honda Motor Co. (HMC) agreed to collaborate on new advanced chemistry battery components, including the cell and module, to accelerate both companies' plans for all-electric vehicles.

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