JLR and BMW will jointly develop their future electric motors and powertrains.
The German company will design them and the UK business will build them for both companies after reports BMW will also supply new V8 engines to JLR models for certain markets.
Fiat Chrysler has withdrawn a $35 billion merger offer for France’s Renault, blaming a breakdown in discussions on the French Government which has a 15% stake in their home carmaker.
The deal would require consent of Nissan, the unions and Renault shareholders but the talks were mired in delays and a way forward couldn’t be agreed this week.
An electric Vauxhall Corsa will be priced to take on the Renault Zoe.
The newcomer will be launched in Europe next year with a projected 205 miles range.
Toyota and Subaru will collaborate on a new electric car platform for the SUV sector.
They already work together on a petrol-powered sports car built by Subaru and changed for Toyota.