Jaguar Land Rover is reportedly continuing partnership discussions with BMW, which could see the British automaker sourcing engine and platform technology from the German company.
In time the BMW/Mini module set could replace the platform underpinning the Land Rover Discovery Sport, and second-generation Range Rover Evoque. Now dubbed the Premium Transverse Architecture it dates back to 2006, when it was spun off a Ford and Volvo platform.
The deal could increase annual FAAR platform output by anywhere between 250,000 and 650,000 vehicles, greatly improving economies of scale.
As well as saving Jaguar Land Rover from developing a new front-wheel drive platform, using the BMW architecture will give it easy access to plug-in hybrid technology.
While the British automaker doesn't need to meet the European Union's 2020 95g/km CO2 emissions target for its fleet of new vehicles, it's likely it will need to meet the EU's stricter 2025 regulations.
These rules see the CO2 target drop to 80g/km, and include a mandate for 15 per cent of new car sales to come from pure-electric and plug-in hybrid models.
Without BMW's platform and plug-in hybrid drivetrain technology, it's unlikely Jaguar Land Rover will be able to achieve the EU's demands.
As previously reported, the ongoing talks could see Jaguar Land Rover using BMW's four- and six-cylinder petrol and diesel engines in both hybrid and non-hybrid forms.
Jaguar Land Rover is preparing to launch a new modular MLA platform for its larger rear- and all-wheel drive models. Set to debut under the next-generation Jaguar XJ, MLA will support traditional internal combustion engines, as well as hybrids and pure electric vehicles.
In early June, BMW and Jaguar Land Rover confirmed the two car makers would team up to jointly develop next-generation electric vehicle drive units.