BMW and Jaguar joint forces to develop EVs
Rivals BMW and Jaguar Land Rover reported they’re joining forces to offset the high costs of developing components for electric cars.
The two companies set aside their differences to work together on electric cars
Stocks impacted: Bayerische Motoren Werke AG (BMW), Jaguar Land Rover
The two automakers will form a jointly-operated team of researchers to take BMW-developed technology to the next level during the 2020s. The project will be based near BMW’s headquarters in Munich, Germany. Both companies will still produce drivetrains in their own factories. The need for record spending on the technology coincides with a time of low profit and stagnating sales. BMW is currently working through a $14 billion savings plan, while Jaguar is undergoing a 2.5 billion-pound savings program of its own and cutting 4,500 jobs. The move follows Fiat Chrysler Automobiles NV ’s proposal last week to merge with Renault SA, creating the world’s third-biggest automaker. After the announcement, BMW shares are trading marginally higher, adding just 0.07% on the day.
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