BMW Group’s Munich Plant Will Produce Only EVs After 2027

BMW Group Neue Klasse sedan on assembly line

(Credit: BMW Group)

by | Jan 11, 2024

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BMW Group’s Plant Munich is ramping up its all-electric model ambitions with a plan to manufacture nothing but all-electric models beginning at the end of 2027. 

The move will make the plant the first in the BMW Group’s existing production network to transform to all-electric. From 2026, the plant will produce the Neue Klasse sedan, an electric concept car with immersive tech, parallel in production with other models.

The Munich plant, which is the company’s primary production facility, was also where BMW first began manufacturing its first plug-in hybrid models from the BMW 3 Series on the same production line as combustion engine vehicles. In 2021, the company introduced its first all-electric vehicle, the BMW i4, to be produced on the same production line.

Currently, every second car off the production line at the plant has an all-electric drive system. By the end of 2027, “the era of vehicles with combustion engines in Munich will draw to a close 75 years after the launch of the BMW 501 in 1952,” the company said in its announcement.

Large Investment and EV Production Updates

The car company is investing more than $711 million as part of its plan, allocating the funds for four buildings, including a new vehicle assembly line with logistics areas and a new body shop.

“The Munich plant is an excellent example of our ability to adapt. We are investing ($711 million) here and will produce exclusively all-electric vehicles in our parent plant from the end of 2027,” Milan Nedeljkovic, member of the board of management of BMW AG, production, said in a statement. “Last year alone, six all-electric models went into production. At the same time, we also set a production record, proving that we are simultaneously able to both deliver and shape the future in our production network.”

BMW Group will also produce the Neue Klasse sedan at a new plant in Debrecen, Hungary, and will also produce them in Shenyang, China, and San Luis Potosí in Mexico.

With the shift to all-electric vehicles, BMW Group has moved the traditional engine manufacturing to Hams-Hall in Great Britain and Steyr in Austria. In addition, 1,200 employees have been trained for different production strategies in Munich or have taken employment at other locations in the production network.

EV Growth

BMW Group is not the only major carmaker investing heavily in electric vehicles. Volvo Cars recently announced its plans to develop an all new EV platform with loan financing of more than $460 million. Volvo expects the financing to result in new EV technologies and innovations, including reduced weight and faster charging for greater efficiency.

In addition, localities and municipalities are expanding their EV infrastructure for charging stations. Lack of infrastructure is one of the biggest barriers to EV adoption, with many potential buyers in the United Kingdom recently citing accessible charging as a main barrier. Car manufacturers and convenience store chains are also teaming up to expand charging networks along major roadways.

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