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Automobile industry

BMW and VM Motori in the Running to Power Jaguar Diesel Engine

Strategic Insights

— 1 min read

BMW appears to be the front-runner in a highly competitive bid to supply the engine for Jaguar's new diesel car, set to debut in 1995 or 1996. However, Italian company VM Motori, partly owned by Midland Private Equity, is still in the running, having recently secured a major order from Chrysler for 40,000 engines a year. The diesel car market is growing rapidly, driven by strong demand in Europe, particularly in France and Italy, where diesels now account for 40% and 9% of new registrations, respectively.

Key Takeaways:

  • BMW is the leading contender to supply the engine for Jaguar's diesel car, set to debut in 1995 or 1996.
  • VM Motori, an Italian company partly owned by Midland Private Equity, is also in the running to supply the engine.
  • VM Motori recently secured an order from Chrysler for 40,000 engines a year.
  • The diesel car market is growing rapidly, driven by strong demand in Europe, particularly in France and Italy.
  • Jaguar is proposing the diesel car due to the growing demand in Europe.
  • In France, diesels now account for 40% of new registrations.
  • In Italy, new registrations of diesel cars have decreased to 9% due to a super tax levied in the early 1980s.
  • Industry sources expect Silvio Berlusconi's new government to lift some of the penalizing taxes, which could revive the Italian diesel car market.
  • BMW has stolen a march on its rivals with its diesel engines supplied for luxury cars such as the Vauxhall Omega.

Statistics:

  • 40,000: The number of engines per year that VM Motori has secured from Chrysler.
  • 1995 or 1996: The planned release date of Jaguar's diesel car.
  • 40%: The percentage of new registrations for diesels in France.
  • 9%: The percentage of new registrations for diesels in Italy.
  • 40,000: The number of engines that VM Motori will supply to Chrysler per year.

Sources:

  • "BMW and VM Motori in the Running to Power Jaguar Diesel Engine", John Glover in Milan, and Simon Beavis (author not specified).
  • Industry sources, including a spokesman for Jaguar and representatives from BMW and VM Motori.
  • "European Car Industry Sees Jump in Diesel Demand", article not specified but presumably from a reputable automotive publication.
  • "Berlusconi's Government Expected to Lift Diesel Taxes", article not specified but presumably from a reputable publication.

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