BMW equips Munich plant for Electric Vehicle production

BMW is committing €650 million ($711 million) to transform its primary Munich plant into an exclusive electric vehicle (EV) production facility by the end of 2027, marking a significant stride toward the electric age.

The initiative involves erecting four structures, encompassing a fresh vehicle assembly line and body shop. Traditional engine manufacturing has been relocated to Great Britain and Austria, with 1,200 employees undergoing retraining or transitioning to alternative roles in different locations.

Unlike other carmakers, BMW has not set its own target for ending production of combustion engine cars, but is coming up against European Union regulation which effectively bans the sale of new petrol and diesel cars in the bloc from 2035.

All-electric vehicles made up 15% of the Munich-based carmaker’s sales in 2023, a ratio it expects to rise to a third by 2026.

Also Read: China’s Xiaomi unveils first electric vehicle

Automakers, including Mercedes-Benz and Volkswagen, have cautioned in recent months that the growth of electric vehicle (EV) sales is slower than anticipated. Economic pressures on consumers, coupled with the easing of supply chain bottlenecks that previously hindered production, contribute to this deceleration.

BMW presented its ‘Neue Klasse’ preview at the IAA car show last September, representing a multibillion-euro effort by BMW to jump the technology gap with competitors like Tesla and other EV makers.

Scheduled for production at the Munich plant from 2026, this car, approximately the size of the carmaker’s popular 3-series model line, will be manufactured alongside combustion engine vehicles.

Additionally, production will take place at BMW’s forthcoming plant in Debrecen, Hungary, as well as in Shenyang, China, and San Luis Potosi, Mexico.