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I would think that with so much Brexit uncertainty right now there would be zero chance that BMW would even think of doing this right now.
Even without that, trying to think what the resulting merger would look like down the road. I'd imagine they would want to put BMW engines in Range Rovers which might take a bite out of their own SUV / SAV sales. Considering that that segment is their big money maker right now and already having a VERY full line up of every size SUV you could think of, not sure they would want to risk cannibalising their own SUV sales.
Same thing with Jaguar. If you slapped a BMW engine in a Jag, then you'd have a lot of better looking equivalents to current BMW offerings.
Maybe perhaps for their EV tech, as Jag seems much further along than BMW. But who knows what they have done behind the scenes.
Seems to me that spending that money on new tech would be money better spent.
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