BMW to retool German plants for EVs & relocate engine manufacture

Automotive giant BMW has said it will retool its factories in Germany to manufacture electric vehicles and components and relocate production of combustion engines to Austria and the UK as part of its move towards low-emission vehicles.

With electric vehicles gain traction with consumers, and governments accelerating the demise of the combustion engine, auto factories worldwide are in a clamour to find investment for the next generation of cars.

Earlier this week, the German government announced that it would extend its subsidies for electric vehicles until 2025 in a bid to promote low-emission vehicles.

Meanwhile, the UK government said it would ban the sale of new petrol and diesel cars from 2030. 

“By the end of 2022 all our German factories will make at least one fully electric car,” Milan Nedeljkovic, BMW’s board member responsible for production said in a statement.

BMW's manufacturing plant in Munich, which currently makes four, six, eight and twelve-cylinder combustion engines will be repurposed with an investment of €400 million until 2026, in order to make next-generation electric vehicles.

Production of eight and twelve-cylinder engines will be moved to Hams Hall in the UK, with other engine manufacture moving to Steyr in Austria.

Bavaria, where BMW is headquartered is set to receive the largest share of the investments, the company said. The plant in Munich will make the i4 electric car, a fully electric version of the 5-series and 7-series will be made in Dingolfing and an electric X1 will be made in Regensburg.

The number of staff working at the Dingolfing plant will double to 2,000 as a result of the move, the company claimed.

BMW also said that it will improve its cost structure by €500 million by the end of 2020.

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