Following its record year in all-electric car sales last year, BMW has announced that it would invest $711 million (€650 million) to transform its main facility in Munich to solely build electric vehicles by the end of 2027. It's all part of a multibillion-dollar drive to give its next-generation Neue Klasse EVs a competitive edge against Tesla.
BMW's Munich factory, according to a press release, will be the first in the company's existing manufacturing network to be adapted for all-electric vehicles. A new plant in Debrecen, Hungary, is now under development and will solely produce electric vehicles, with the forthcoming Neue Klasse models expected to be produced there in 2025. Following the completion of the Munich facility, manufacturing of the forthcoming Neue Klasse sedan, as well as other next-generation vehicles made at BMW's factories in China beginning in 2026 and Mexico beginning in 2027, will be relocated there.
BMW's all-electric i4 is now being manufactured in Munich, where the company has been producing automobiles since 1922. BMW discontinued ICE manufacturing in Germany a few months ago, shifting production from the Munich plant to the UK and Austria - a significant step for the heritage carmaker after producing polluting vehicles in its home nation for 60 years.
Unlike its competitors, BMW has not established its own target for the end of ICE manufacturing, so it may simply have to comply with EU laws, which prohibit the sale of petrol and diesel vehicles beginning in 2035. BMW's strategy, on the other hand, is to cohabit with electric and gasoline vehicles, with significant investments in both (including diesel engines). Nonetheless, the manufacturer claims that it is on track to meet its EV production targets, stating that all-electric cars accounted for 15% of BMW's sales last year. It hopes to sell 500,000 BEVs this year.
In addition, BMW has been pouring money into its Neue Klasse idea, which it claims would bridge the technological gap and bring the brand up to speed with rivals like Tesla, according to Automotive News Europe. The manufacturer revealed its Vision Neue Klasse concept last September at the IAA Munich Mobility auto show, which it is now testing and fine-tuning. Six Neue Klasse cars will be available starting in 2025, including a 3 Series sedan and an SUV.
BMW expects its next-generation innovation to be a "benchmark in terms of range, charging speed, and pricing." The head of BMW Group Design remarked in September that the design is "typically BMW and so progressive it looks like we skipped a model generation." It's too early to tell how much the 2025 Vision sedan will cost, but predictions range from $35,000 to $45,000. While the sedan aims to compete with the Tesla Model 3, BMW has promised a range of vehicles to suit a variety of clients, so stay tuned.
Photo credit: BMW Group
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