The world’s largest automaker said Tuesday it will buy up 1,600 vehicles from the U.S. automaker.
The deal is expected to be completed in late 2019.
“We’re thrilled to partner with Ford Motor Company to provide customers and manufacturers with a world-class brand of premium quality, quality vehicles that are the backbone of our global sales network,” said BMW Group Chairman Michael Horn, a member of the board of management of the German automaker, in a statement.
Ford has a reputation for making high-end, well-rounded vehicles, which are often more expensive than comparable models.
BMW said it will continue to make the X3 and X5.
The company said the X5 will be sold in both North America and Europe.
Ford said it has not yet decided whether it will sell its cars directly or to other automakers.
The purchase of the 607,000 vehicles is the largest in history for a single automaker by value, according to Bloomberg News.
“This deal will make BMW one of the most valuable brands in the world, and we are thrilled to add this global brand to our portfolio,” Ford President of Global Brand Management Paul Polman said in a written statement.
“BMW is the leader in premium luxury and is poised to continue its global leadership in the luxury category with this acquisition.”
Ford said the cars will be produced at its Michigan Assembly Plant in Dearborn, Mich., and then shipped to dealers.
The U.K. automakers luxury brand, Jaguar Land Rover, announced a similar deal in May to purchase nearly 800,000 Ford Land Rovers.
The Detroit automaker’s new model lineup will include the X2, X3, X5 and X7.