Transformation to E-mobility: BMW Group’s Munich Plant to Produce Exclusively All-Electric Models from the End of 2027Jan 18th, 2024
+++ Neue Klasse sedan to be built in Munich from 2026 +++ Era of automobiles with combustion engines from Munich draws to a close after 75 years at the end of 2027 +++ € 650 million invested in securing location in the long term +++
Munich. A new era is dawning for BMW Group Plant Munich: from 2026, the iconic parent plant will produce the Neue Klasse sedan. Just one year later, the factory will manufacture nothing but all-electric models, making the Munich plant the first location in the BMW Group’s existing production network to have successfully completed the transformation to E-mobility from the end of 2027.
“The Munich plant is an excellent example of our ability to adapt. We are investing € 650 million here and will produce exclusively all-electric vehicles in our parent plant from the end of 2027,” says Milan Nedeljković, Member of the Board of Management of BMW AG, Production. “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.”
Peter Weber, Director BMW Group Plant Munich, adds: “Munich is the beating heart of BMW. The plant in Munich is innovative and adaptable. As in the 1960s, a Neue Klasse is again laying the foundation, on which our plant is reinventing itself. The fact that this comprehensive transformation is taking place at the same time as roughly 1,000 vehicles per day are currently being manufactured is common practice in Munich and is possible thanks to the outstanding performance of all our employees. We are delighted to be guiding the Munich plant into a fully-electric future – starting with the Neue Klasse sedan.”
Transition to Electromobility
Smooth transition to electromobility, as the era of combustion automobiles from Munich ends in 2027
BMW Group Plant Munich is a prime example of the fluent transition to the era of electromobility. In 2015, the first plug-in hybrid models from the BMW 3 Series were manufactured on the same production line as combustion vehicles. In 2021, the BMW i4 became the first all-electric vehicle to be produced on the same production line. Nowadays, every second vehicle that rolls off the production line has an all-electric drive system.
From 2026, production of the Neue Klasse in the Munich plant will initially run parallel to production of current models. A good year later, from the end of 2027, the BMW Group’s parent plant will be the first existing site in the global production network to manufacture exclusively all-electric vehicles, having been transformed accordingly. As such, 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.
After the start in the new plant in Debrecen, Hungary, and in Munich, the Neue Klasse vehicles will also be produced in Shenyang, China, and San Luis Potosí in Mexico.
Modifications and Investments
Extensive modifications offer long-term security for location
Over the course of a history stretching back more than 100 years, BMW Group Plant Munich has undergone many changes and repeatedly reinvented itself. Together with the conversion from manufacturing aircraft engines to automobile construction, the successful introduction of the Neue Klasse in the 1960s is a milestone in the list of changes throughout the company’s history.
At the moment, multiple large construction sites are evidence of the turnaround, as they pave the way for the arrival of the Neue Klasse from 2026. The € 650 million of investment comprises four buildings, including a new vehicle assembly line with logistics areas and a new body shop.
In order to create the space within the limited floor space at the plant in the heart of Munich, the traditional engine manufacturing has been moved to Hams-Hall in Great Britain and Steyr in Austria after roughly 70 years at the parent plant. 1,200 employees have been trained for different production strategies in Munich or have taken up employment at other locations in the production network.
As in the 1960s and all other changes since, the current transformation of BMW Group Plant Munich is taking place whilst production is still ongoing. Regardless of the construction work, roughly 1,000 cars roll off the production line every day, including BMW 3 Series and the BMW i4 – all on the same assembly line.
The extensive reorientation of the plant secures a long-term future for the site in Munich, and is also a significant investment in Bavaria as an industrial location.
Adoption of Digitalisation and BMW iFACTORY
Digitalisation at the Munich plant in accordance with the principles of BMW iFACTORY
The principles of BMW iFACTORY guarantee the utmost flexibility, excellent processes and outstanding integrability at all sites within the BMW Group – from the completely new plant in Debrecen to the parent plant in Munich, which is over 100 years old and at which the transformation is in full swing. BMW iFACTORY is synonymous with the superb production expertise throughout the entire production network. One important aspect is a comprehensive digitalisation with a holistic approach to the interaction between people, processes and systems. It optimises processes and supports employees with their work. The implementation takes place in three areas: data science, artificial intelligence (AI) and virtualisation.