BMW is moving ahead with a $3 million land-loan deal with Land Rovers that could lead to a larger lease for the company’s new X1.
The Land Rover Land Rover brand has already taken on an ownership stake in BMW, and the new arrangement with BMW could result in more land-leasing opportunities for BMW as it builds its brand, writes Fortune’s David Tipton.
BMW also recently announced plans to begin offering lease options for the X1, which could mean more options for leasing the vehicle than ever before.
Land Rover and BMW announced the agreement in November, but only last week the company announced it was making the deal public.
The lease will be for a three-year period beginning in 2019 and covering a total of $3,500,000 per year.
BMW says it is not yet ready to announce the total amount of the loan, which will cover the cost of land and other equipment that will be used to build the X2, but that it will pay the land-lease interest and principal in full.
Land Rover will lease BMW’s entire production line, as well as all the parts and components of the X4, X5 and X6.
The company says it has already started leasing BMW’s new vehicles to customers in Australia and the United Kingdom, as it continues to ramp up production of the BMW X3 and X4 models.
The news comes on the heels of BMW announcing it will be bringing its production line online in Australia, with the first vehicles expected to be on the market in 2020.