German automaker, BMW, has made a significant decision to transition its main Bavarian plant to focus solely on the production of electric vehicles (EVs). This move marks the end of an era as the production of internal combustion engines (ICE) will be relocated to plants in the UK and Austria. While industry competitors have set firm timelines to discontinue petrol and diesel vehicle production, BMW has taken a different approach by investing in both electric and petrol cars.
The Bayerische Motorenwerke, located in Munich, has been producing polluting vehicles for the past 60 years. However, the final engine assembly will take place this month, signifying a new chapter for the company. With a €400 million investment, BMW aims to convert the Bavarian plant into an all-EV production facility, aligning its efforts with the global shift towards sustainable mobility.
To accommodate the ongoing demand for ICE vehicles, BMW will relocate its ICE production to the BMW Steyr plant in Austria for V8 engine production, and England’s Hams Hall factory for other combustion engines. Meanwhile, the Munich factory will shift its focus to EV manufacturing, with the BMW i4 already being produced there since October 2021, and plans for the Neue Klasse to commence production in 2026. Additionally, the Dingolfing plant produces the iX, i7, and next-gen i5, while Regensburg is responsible for assembling the iX1 and iX2 electric SUVs.
As part of the company’s commitment to e-mobility, a battery test center is being constructed at the BMW site in Wackersdorf. This facility will play a crucial role in testing high-voltage batteries and other e-drive components. Furthermore, BMW plans to establish an additional battery factory in the area, highlighting its dedication to meeting the growing demand for electric vehicles.
While BMW remains invested in both electric and petrol vehicles, it aims for 50% of its total sales to be derived from ICE vehicles by 2030. This target sets them apart from their competitors who are striving for a complete transition to all-electric models by the same year.
1. Is BMW completely discontinuing the production of petrol and diesel vehicles?
No, BMW is not completely discontinuing the production of petrol and diesel vehicles. The company is investing in both electric and petrol cars, with plans to have them coexist. The main focus of BMW’s transition is to enhance the production of electric vehicles while continuing to cater to the demand for internal combustion engines.
2. Where will BMW relocate its internal combustion engine production?
BMW will relocate its internal combustion engine production to plants in Austria and the UK. The BMW Steyr plant in Austria will handle the production of V8 engines, while the Hams Hall factory in the UK will be responsible for manufacturing other combustion engines.
3. What models are currently being produced at BMW’s Munich factory?
Currently, the Munich factory is producing the BMW i4, which has been in production since October 2021. Additionally, plans are in place for the production of the Neue Klasse to begin in 2026.
4. What investments is BMW making in its e-mobility sector?
BMW is making significant investments in its e-mobility sector. In addition to converting its Bavarian plant for all-EV production, the company is constructing a battery test center at the BMW site in Wackersdorf. Plans are also underway to establish an additional battery factory in the area to meet the increasing demand for electric vehicles.