Report BMW - Jaguar Land Rover collaboration

[dalab]

Two new compact Jaguar SUVs on the cards, tipped to use BMW platform
BMW architecture could underpin a new entry-level Jaguar SUV and crossover coupé – plus future baby Land Rover, next-gen Evoque and Discovery Sport

Adding JLR’s current small and medium volumes of 250,000 to BMW’s 850,000 or so production of front-drive vehicles will be seen as a handy boost. It would also integrate FAAR family production at BMW’s Oxford plant and JLR’s Halewood facility, which would be backed up by engine and battery production at Hams Hall and electric motor production in Wolverhampton.

With the addition of two small Jaguars and a baby Land Rover, FAAR platform volumes could approach 1.5 million annually by 2025.

It seems a round business for BMW, much more of this interesting information in:
autocar.co.uk/car-news/industry/two-new-compact-jaguar-suvs-cards-tipped-use-bmw-platform

 

[hovabongZA]

JLR and BMW will be doing a lot of business together,not a bad thing. I’d prefer that partnership over MB + BMW.

 

[dalab]

JLR and BMW will be doing a lot of business together,not a bad thing. I’d prefer that partnership over MB + BMW.

I agree, (The sum of these figures will be a great solution to any current and future lags amortizing investments and also generating high gains in profits) but in the field in which the co-operation of MB-BMW (mobile services, AV, etc.) takes place, outside the core bussines MB is a much more powerful partner

 

[tristatez28lt1]

Consolidation...just like Marchionne said.

 

[Merc1]

JLR and BMW will be doing a lot of business together,not a bad thing. I’d prefer that partnership over MB + BMW.

Stunning. So you'd prefer BMW to tie up with a company that will run the risk of draining them of everything because they're (JLR) sickly and need major help vs Mercedes who would be their equal? Your hatred of anything Mercedes has rendered you totally ineffectual.

M

 

[Centurion]

JLR and BMW will be doing a lot of business together,not a bad thing. I’d prefer that partnership over MB + BMW.

Long term JLR were not going to survive going at it alone. Partnering with BMW on engines removes the burden of developing and producing engines.

However, I wonder why JRL are ditching their own newly launched I6 and mild-hybrid 4 cylinders so soon?

 

[EnI]

So, if that's true BMW seem to find a partner for their FAAR platform (it was rumoured it could be Mercedes though). Pairing that with the fact JLR will use BMW ICE & e-motor engines & entire drivetrain solutions, we can say that upcoming FWD/FWD-AWD Jags & LRs will practically be rebranded BMWs. OK, in a way Supra is "rebranded" Z4. It actually isn't but ...

And since BMW & Daimler have said their AD & mobility services collaboration is open for new partners, I expect JLR will join the bandwagon. It's inevitable. JLR can't do it alone. So ... BMW are tying JLR to themselves, while Daimler is doing that (even more extensively) to Aston Martin, who also won't be able to survive alone in BEV / AD / mobility services era. And then there's also Volvo - a part of Geely Group which owns a part of Daimler AG ...

A new full-premium automotive collaboration in the making?

smart, MINI, Volvo, Jaguar, Land Rover, BMW, MB, Maybach, Aston Martin, Rolls-Royce. Quite a portfolio ... Would lure in quite some wealthy clients into these brands based mobility services portfolio & stuff.

Only VAG can close with a portfolio like "Audi, Porsche, Bentley, Lamborghini, Bugatti" ...

Yap, the era of consolidation is here ... Perhaps not necessarily in a way of mergers & acquisitions but certainly via very close collaborations.

 

[Deleted member 1071]

...Yap, the era of consolidation is here ... Perhaps not necessarily in a way of mergers & acquisitions but certainly via very close collaborations.

...and we will see some smaller, highly innovative hightech BEV specialists such as Rimac and Rivian increasing their influence through collaboration with larger manufacturers.

 

[EnI]

...and we will see some smaller, highly innovative hightech BEV specialists such as Rimac and Rivian increasing their influence through collaboration with larger manufacturers.

Legacy carmakers do ventures & collaborations with start-ups (in various fields) all the time ... Not sure that necessarily increases start-up's influence and / or brand recognition ... What it does - in the very end, if successful - the start up & the developed tech is acquired by a carmaker itself (or a bunch of them collectively). But usually such start-ups only serve as "peeping places" - where carmaker's engineers get a peek at a new ideas & tech, and then develop such - or very similar - thing by themselves in-house ... Sometimes even by pouching key developers & engineers from the start up. That's usually the end phase since start-ups are kept live as long as possible since the "corporate culture" there is much more loose & therefore much more creative. Giant corporations are also much more effective at protecting the patents (or buying the patent rights etc).

 

[Matski]

What it does - in the very end, if successful - the start up & the developed tech is acquired by a carmaker itself (or a bunch of them collectively). But usually such start-ups only serve as "peeping places" - where carmaker's engineers get a peek at a new ideas & tech, and then develop such - or very similar - thing by themselves in-house ...

Quite. BMW's investment in new tech via BMW i Ventures, currently has this portfolio...

 

[hovabongZA]

Long term JLR were not going to survive going at it alone. Partnering with BMW on engines removes the burden of developing and producing engines.

However, I wonder why JRL are ditching their own newly launched I6 and mild-hybrid 4 cylinders so soon?

Are the new I6 and hybrid 4s any good? Honestly I don’t think BMW would survive without partnering with other manufactures just as Jag.From an enthusiasts point of view I’d rather see BMW with Jaguar as I believe Jag are a sportier brand than MB.

 

[Centurion]

Yap, the era of consolidation is here ... Perhaps not necessarily in a way of mergers & acquisitions but certainly via very close collaborations.

Deep partnerships is the first step to consolidation.

Are the new I6 and hybrid 4s any good? Honestly I don’t think BMW would survive without partnering with other manufactures just as Jag.From an enthusiasts point of view I’d rather see BMW with Jaguar as I believe Jag are a sportier brand than MB.

It's too early to tell. The mild hybrid I4 are only in the new Evoque so far and will be in the facelifted iPace too. The I6 was only unveiled a few months ago. I don't think customers have taken delivery just yet.

 

[Robbie]

Are the new I6 and hybrid 4s any good? Honestly I don’t think BMW would survive without partnering with other manufactures just as Jag.From an enthusiasts point of view I’d rather see BMW with Jaguar as I believe Jag are a sportier brand than MB.

I don't really think Jag is sportier than Mercedes - that is an outdated perception, IMO. Anyway, I think it makes far more sense for Mercedes to partner with Volvo than Jaguar. For a number of reasons:
1) Volvo and MB share a common shareholder
2) Volvo is really going places, Jag is going nowhere fast

 

[Matski]

Mini
Range Rover / Land Rover
Rover
Bentley
Rolls-Royce
Morgan

.. BMW's quest to stick it's finger in the pie of the ""British"" car industry continues...

 

[SCOTT27]

UK registered Range Rover prototypes spotted in Munich.

 

[klier]

Consolidation...just like Marchionne said.

It's funny, Landrover again using BMW tech?
But I am all for it. Sell that FWD platform to everyone who wants it, so that BMW doesn't need to use it themselves (hopefully).

 

[dalab]

Interesting, but as I read in the commentary of this same report, the collaboration already under way of assignment of engines, platforms and alliance for EVs, sounds very productive in benefits without any of the headaches of buying them, (even though I would personally love it let them do it).

September 18, 2019 03:54 AM UPDATED 7 HOURS AGO
BMW should buy Jaguar Land Rover, Bernstein says
Anurag Kotoky
Bloomberg

Buying JLR for 9 billion pounds ($11.2 billion) could add 20 percent to BMW's earnings, according to Bernstein. The UK company's new Land Rover Defender is pictured at the Frankfurt auto show.

NEW DELHI -- We need to talk about Jaguar Land Rover.

That's the message from Sanford C. Bernstein analysts, who say BMW should buy the British luxury brand from India's Tata Motors.

"BMW is overcapitalized and awash with cash. It has run into the limits of growth for its product range and brand," analysts including Max Warburton wrote in a research note Wednesday.

"JLR is severely challenged, both operationally and financially, but could massively lower both its fixed and variable costs under the wing of a bigger partner."

The suggestion comes as Tata Motors' losses mount, with a sales slowdown in China and Brexit adding to its woes.
BMW is also navigating trade tensions between the U.S. and China that have weighed on profit, and the unresolved political future of the UK, where it makes Mini and Rolls-Royce cars.
Buying JLR for 9 billion pounds ($11.2 billion) could add 20 percent to BMW's earnings, according to Bernstein. It would also contribute almost a quarter to BMW's volumes, but "Tata would need to swallow its pride to sell," the analysts said. They also said the German automaker would have to be less conservative.

A deal would be "emotionally complex" due to their former relationship, when BMW owned Land Rover and the wider Rover group in the 1990s, Warburton and his colleagues wrote.
"It was a traumatic period for the Bavarian company and there are executives in Munich who are still emotionally scarred by the experience."
Still, the logic for an acquisition is compelling, they said.

BMW is working through a $14 billion savings plan and JLR is undergoing a 2.5 billion-pound savings program and cutting 4,500 jobs. The two already agreed to collaborate on their next generation of electric cars earlier this year.
BMW has previously ruled out equity ties with the unit of Tata Motors.
A representative for BMW in India said Wednesday that the company does not comment on speculation, while Tata Motors did not immediately respond to an email seeking comments.

Tata Group bought JLR from Ford in 2008 for $2.3 billion. The Indian salt-to-software conglomerate has been exploring strategic options for JLR, including a potential stake sale, people familiar with the matter have said. Tata Group has denied that.

 

[Robbie]

Interesting, but as I read in the commentary of this same report, the collaboration already under way of assignment of engines, platforms and alliance for EVs, sounds very productive in benefits without any of the headaches of buying them, (even though I would personally love it let them do it).

September 18, 2019 03:54 AM UPDATED 7 HOURS AGO
BMW shoul...

Kind of makes sense. Although I think the emotional aspect they talk about is a real issue.

I still think a Daimler take-over of Volvo makes much sense.

 

[SCOTT27]

They also said the German automaker would have to be less conservative.

Good Luck with that!

 

[Serpens]

I think BMW would need to be insane to buy Land Rover again. Let Jaguar die and then we’ll see what happens with LR.