Stellantis (NYSE: STLA) and Jaguar Land Rover signed a memorandum of understanding to explore collaboration opportunities for product development in the United States, the companies announced.

The non-binding agreement allows both automakers to examine potential synergies across product and technology development. The collaboration would leverage what the companies describe as complementary strengths to create value for both organizations.

"By working with partners to explore synergies in areas such as product and technology development, we can create meaningful benefits for both sides while remaining focused on delivering the products and experiences our customers love," said Antonio Filosa, Stellantis chief executive officer.

JLR Chief Executive Officer PB Balaji stated that collaboration will play an important role in the company's evolution. "Working with Stellantis allows us to explore complementary capabilities in product and technology development that support our long-term growth plans for the US market," Balaji said.

Any potential transactions resulting from the MOU discussions would require customary closing conditions, including execution of binding definitive agreements, according to the companies' statement.

JLR operates as a wholly owned subsidiary of Tata Motors Passenger Vehicles Limited. Stellantis maintains a portfolio of brands including Jeep, Ram, Chrysler, Dodge, Alfa Romeo, Maserati, Fiat, Peugeot, and Citroën.