BMW factory in Munich will only produce electric vehicles

A BMW will invest 650 million euros to convert its mother factory, in Munich (Germany), to produce only electric models from 2027.

The contribution comprises four new buildings, including a new vehicle assembly line, with logistics areas and a new workshop.

It will be the first existing BMW Group production site to complete the transformation to electric mobility.

One of the things that is known is that, in 2026, the plant will produce the sedan called “Neue Klasse” or new class, in translation.

BMW previewed its “Neue Klasse” at the IAA auto show last September, a multibillion-dollar effort by the automaker to bridge the technology gap with competitors like Tesla and other electric vehicle makers.
The car, roughly the size of the automaker's current best-selling 3 Series model line, will be produced at the Munich plant from 2026, in parallel with combustion-powered cars.

The vehicle will also be produced at BMW's new plant under construction in Debrecen, Hungary, as well as in Shenyang, China, and San Luis Potosí, Mexico.

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Unlike other automakers, BMW has not set its own target to end the production of combustion cars, which goes against European Union regulations that effectively ban the sale of new gasoline and diesel cars in the bloc from 2035. .

All-electric vehicles accounted for 15% of the Munich-based automaker's sales in 2023, a proportion the company expects to increase to a third by 2026.

Automakers from Mercedes-Benz to Volkswagen have warned in recent months that sales of electric vehicles are not developing as quickly as expected, with economic pressures weighing on consumers while supply chain bottlenecks have delayed production begins to decline.