BMW embraces the electric revolution: Ceases production of combustion engines at Munich facility

BMW has officially ceased the production of combustion engines at its primary facility in Munich. This strategic move, which had been anticipated for an extended period, aims to repurpose the Bavarian plant to manufacture electric vehicles.

In November 2020, BMW made a significant announcement about the complete relocation of combustion engine production. The manufacturing of these engines has now shifted to Steyr in Austria and Hams Hall in the UK. The symbolic conclusion of this transition occurred in November 2023 when the last eight-cylinder engine was assembled at the Munich plant. This marks a pivotal moment for Bayerische Motorenwerke, concluding 60 years of engine production in Munich.

The conversion for producing electric vehicles (EVs) is underway, focusing on transforming the existing engine assembly line at the main plant. The all-electric BMW i4, which commenced production in Munich in October 2021, is a testament to this shift. Furthermore, starting in 2026, the New Class (Neue Klasse) will join the main plant's production line. BMW's substantial investment of approximately 400 million euros underscores its commitment to this conversion and the future of electric vehicle manufacturing.

The German automaker BMW is increasingly prioritising using aluminium to reduce vehicle weight, with its utilization of this metal showing steady growth in recent years. Automobile manufacturers worldwide are actively pursuing the goal of enhancing fuel efficiency by minimizing the weight of vehicles, and aluminium emerges as an ideal choice. Compared to steel, its lightweight nature makes it a favourable option, and its sustainability is underscored by its recyclability. Utilizing lighter aluminium also has additional benefits, including reduced wear and tear.

The 1000+ workers formerly engaged in engine construction will undergo retraining and be reassigned to different departments in the future. This relocation may occur at the Munich plant or other BMW facilities. The decision and substantial investment made in 2020 were positively acknowledged by the Works Council, which described it as an exemplary instance of a well-organized transformation within the German industry.

BMW's reorganisation of its main plant in Munich marks a significant step in developing its Bavarian production network for electric vehicles. Currently, the i4 is in production in Munich, and the iX, i7, and i5 are rolling off the assembly line in Dingolfing. Regensburg manufactures the iX1 and iX2 electric SUVs, while various facilities contribute to component production. Dingolfing, for instance, is the hub for electric drive production.

BMW Group has entered a memorandum of understanding with Rio Tinto to procure aluminium from their hydro-powered operations in Canada, significantly reducing CO2 emissions. This innovative approach aims to save approximately 70 per cent of CO2 emissions compared to traditional aluminium manufacturing methods. The allocated supply volumes will be exclusively utilised in the production of vehicles at the BMW Group facility Spartanburg in South Carolina, focusing on body components such as the bonnet.