Both companies are expanding their range of electrified products. The Jaguar Land Rover will launch a plug-in hybrid Evoque and Discovery Sport in the next 12 months, while BMW will introduce the electric iX3 next year, closely followed by the i4, an electric equivalent of the 3 series.

The announcement comes just weeks after Jaguar Land Rover reported a £3.6 billion loss during its fiscal year amid persistent rumours of a possible acquisition by PSA Group, an agreement that has not yet been confirmed.

The collaboration, which includes joint investments in research and development, engineering and procurement, is due both to the success of Jaguar$0027s electric I-Pace and to the long experience of BMW, which has built EDUs in-house since it launched i3 in 2013. BMW said the companies “share the same strategic vision of environmentally friendly and future-oriented electric drive technologies.

Jaguar Land Rover and BMW will work together, at BMW headquarters in Munich, to develop the EDUs with both development systems in order to “offer the specific features required for their respective product ranges,” JLR said in its statement.

The EDUs will be manufactured by JLR and BMW in their respective plants. For JLR, this will be the Engine Manufacturing Centre in Wolverhampton, which was confirmed as the company$0027s global EDU production site earlier this year.

BMW has not yet disclosed where it will build its EDU, but it has been widely reported that BMW is expanding its manufacturing base at Hams Hall in the Midlands, which means that it is very close to JLR$0027s facilities.

The financial terms of the agreement will not be disclosed.

Jaguar Land Rover said the move supports “the advancement of electrification technologies, a central part of the automotive industry$0027s transition to a future ACES (Autonomous, Connected, Electric, Shared).

It$0027s not the first time Jaguar Land Rover and BMW have met. In 1994, BMW bought Land Rover but had limited success, so it sold it to Ford in 2000. Ford later sold the brand to Tata Motors in 2008.

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