Former FCA CEO Sergio Marchionne predicted long ago that car companies would have to join forces as automotive research and development costs continue to rise. The insightful Italian-Canadian cautioned companies from spending billions to develop identical tech to their rivals just to call it their own, and it seems the industry is beginning to listen.

SEE ALSO: Jaguar I-Pace vs Tesla Model X: Which EV is Right for You?

This week, Jaguar and BMW announced a partnership that will see them join forces on next-generation EV drive systems – likely realizing that it is pointless to develop their own versions of technology that will end up performing in similar or nearly identical ways.

In a statement, the two companies said the “strategic collaboration will build on the considerable knowledge and expertise in electrification,” within Jaguar and BMW. Jaguar brings knowledge gained from the development of the I-Pace SUV to the table, while BMW will contribute through experience gained developing and producing the i3.

“The agreement will enable both companies to take advantage of efficiencies arising from shared research and development and production planning as well as economies of scale from joint procurement across the supply chain,” Jaguar and BMW added.

Jaguar and BMW are a good fit for one another as they have similar levels of experience with production electric vehicles. They are also both luxury automakers, so they will have similar needs for their next-gen electric powertrains with regard to refinement, performance and range. Future Jag/BMW powertrains will still be quite different, however, with both saying they will develop systems “to deliver the specific characteristics required for their respective range of products.”

Jaguar and BMW did not provide a timeline on when we could see the its next-generation electric drive system make its debut.

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