BMW and Jaguar Land Rover (JLR) are reportedly negotiating a deal that would see the German company supply its next-generation V8 petrol engine to the British luxury car maker.

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According to Automobile, the deal would see BMW supply its next-generation turbocharged V8 engine for use in various Jaguar, Land Rover and Range Rover models.

The new BMW V8 engine will displace four litres, and will replace the Bavarian company's current 4.4-litre V8, which produces between 335kW and 450kW of power.

For Jaguar Land Rover, the new 4.0-litre BMW V8 would supplant the supercharged 5.0-litre V8 that it currently employs.

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JLR is working on broadening its modular Ingenium engine range beyond the current 2.0-litre four-cylinder line-up to include a 1.5-litre three-cylinder and 3.0-litre straight-six, with the latter said to be making its debut next year.

This means that there's no cost-effective way for the Tata-owned luxury car maker to develop a new V8 engine, as there's no V6 counterpart with which to share parts and development money with.

For BMW, this deal could give its new V8 a much improved business case, as sales of eight-cylinder models are in decline while development costs are going in the opposite direction.