BMW has officially ended production of internal combustion engines in Germany, marking a significant milestone for the company. Now it is crucial that the Bavarian plant be repurposed exclusively for the production of electric vehicles, as the company relocates its internal combustion engine manufacturing operations to the UK and Austria.
Unlike its rivals, BMW remains noncommittal on a specific timeline for discontinuing petrol and diesel car production, maintaining a measured skepticism towards the prospect. While its plan does accommodate the simultaneous development of both electric and petrol vehicles, the company’s efforts are particularly notable for their emphasis on harmony between these two powertrains, with substantial investments allocated to each. Notwithstanding this milestone, the Bavarian Motor Works in Munich marks a significant turning point – it’s been producing emissions-heavy vehicles for six decades, culminating in the latest engine development this month. BMW reconfirmed its commitment to electrification by relaunching plans to convert its plant into a fully electric vehicle-manufacturing facility, with a €400-million investment earmarked for the project, as announced in November 2020.
Notwithstanding, BMW is shifting its focus to plants in Austria and the UK to ensure its ICE production remains operational. According to a recent report, approximately 1,200 employees previously working at the ICE building in Munich are set to receive retraining and be redeployed to either work on electric vehicles (EVs) at the Munich manufacturing facility or other areas. Austria’s Steyr plant, a subsidiary of German automaker BMW, has confirmed its status as the primary hub for V8 engine production, while the UK’s Hams Hall manufacturing facility, located just outside Birmingham, is set to handle the majority of other combustion engines.
The all-electric BMW i4 has been produced at its Munich facility since October 2021, with reports suggesting that production of the Neue Klasse will commence at this site in 2026. The production of distinct fashion models, including the iX, i7, and next-generation i5, takes place at Dingolfing’s facility, while the iX1 and iX2 electric SUVs are manufactured in Regensburg. Substantial investments are flowing into the company’s e-mobility segment, with a cutting-edge battery testing facility currently under construction at its Wackersdorf website, designed to inspect high-voltage batteries and diverse e-drive components. Additional plans are in place to construct a second battery production facility within the complex.
However, as BMW strives to boost its electric vehicle sales, the company has announced ambitious plans: by 2030, it aims for 50% of total revenue to come from internal combustion engine (ICE) vehicles, despite rivals setting their sights on a full electrification switch in the same year.
