BMW is to launch a new V8 diesel engine which is likely to power both the executive 7-series and the next generation Range Rover. Currently BMW's 1.8-litre four-cylinder and 2.5-litre six-cylinder turbodiesel engines can be found in the 3- and 5-series, while Land Rover models feature the L-series 2.0 Di in the Freelander, the 2.5 tdi 114 bhp engine and the BMW 2.5 straight six.

In addition the new 3-series, which goes on sale in the UK in October, will feature a new 2.0-litre direct injection four-cylinder 136bhp engine and later a new six-cylinder 2.9-litre 170bhp turbodiesel engine which is also likely to feature in the 5-series and the new Range Rover. It could also power the new Land Rover Discovery, likely to be called Tempest, which is expected to go on sale in the UK in the autumn and will be a seven-seater with three rows of seats, unlike the present model which features five seats with two side-facing seats.