BMW, Jaguar Land Rover to develop electric engine

German high-end car giant BMW and British group Jaguar Land Rover announced yesterday they are teaming up to develop a new generation of electric motors. A joint team will be based in Munich and tasked with developing the “next generation electric drive units” which BMW will launch together with JLR.

“Cooperation between car manufacturers to share know-how and resources is important” as the automotive industry tackles “the significant technological challenges” posed by the electric cars of the future, said BMW in a statement. The partnership is for research and development and the engines will be produced “by each partner in their own manufacturing facilities,” BMW said in a statement.

Both groups hope the partnership will reduce development costs at a time when the transition to electric vehicles weighs heavily on manufacturers’ balance sheets. Like many other traditional carmakers, both BMW and JLR are racing to catch up with US tech giant Tesla which has a head-start in making the cleaner, smarter vehicles of the future.