BMW’s mother plant in Munich is undergoing important renovation in view fo becoming an ‘iFactory’ of the future /BMW
BMW Group Plant Munich is gearing up to launch the ‘Neue Klasse’ in the summer of 2026. Three new production halls are being built for the body shop, assembly, and associated production logistics during the ongoing operations.
“For the production start of the Neue Klasse, we will have a state-of-the-art plant in Munich characterized by flexibility, innovation, and, above all, efficiency,” says Plant Director Peter Weber.
Starting in 2027, the Munich plant will exclusively produce fully electric vehicles, further enhancing efficiency. Planning, close cooperation with development teams and suppliers, and integrating modern production technology within new structures will all play key roles.
“With the Neue Klasse, we will significantly reduce manufacturing costs at the Munich Plant,” says Weber. In addition to optimized production processes and targeted automation, the ‘new class’ vehicle architecture will also leverage further efficiencies.
Focusing on a single-drive train variant reduces production steps and the number of parts. This is especially true for wiring harnesses, which previously varied according to engine type and can be complex to install.
Munich plant director Peter Weber and BMW board member for production Milan Nedeljković /BMW
Pre-series at pilot plant
The timeline for the ramp-up in Munich is carefully synchronized, partly due to the plant’s refurbishment. The first pre-series vehicles will be built at the pilot plant of the BMW Group Research and Innovation Center (FIZ), with support from Plant Munich’s production team, before the end of the year.
“Alongside the pilot plant at the FIZ, we are also using virtual simulations to ensure a smooth ramp-up,” says Weber, describing the unusual situation in the decisive year ahead of the launch. He adds that Plant Munich’s experienced launch team works closely with colleagues at the new plant in Debrecen, Hungary, where the first new-class model will enter Production late this year.
Production network
BMW Group has 30 locations on four continents and employs some 80,000 people. Last year, they produced some 2.5 million vehicles. All plants can produce different model variants and drive train types on a single line.
Since the ramp-up of electromobility is not linear and will progress at varying speeds, the company has relied on so-called ‘flex-plants’, which can manufacture vehicles with both internal combustion engines and electric drive trains.
“In this way, we can ensure our delivery capabilities in different market situations and maintain good capacity utilization at our locations,” explains Milan Nedeljković, the BMW board member responsible for Production. “Until one week before production starts, we can make changes to follow market needs,” adds Weber.
The BMW Group expects a significant increase in the market share of fully electric vehicles by the end of the decade. For this reason, the plants in Debrecen and, later, Munich will be the first facilities dedicated exclusively to fully electric vehicles, enhancing electrification capacities throughout the network.
The German plants will lead e-mobility in the BMW Group’s production network. Each builds at least one fully electric model for the global market alongside traditional drive technologies.
Even in a volatile environment, the BMW Group continues to grow its domestic locations. Last year, it manufactured over a million vehicles there, accounting for a quarter of Germany’s total automotive Production.
At the same time, the company’s production depends on a balanced global distribution of value creation and market expectations. “The strategic and flexible structure of our production network strengthens our resilience and makes us more competitive,” adds Nedeljković.
The all-important human factor
“To be competitive, we need efficiency, flexibility, and innovation. The most crucial success factor here is the human factor, emphasizes Weber. The shift toward electrified vehicles also changes employee roles and required skills. With the flexible ramp-up of e-mobility at BMW Group plants, employees can gradually be prepared for new job content.
“Despite technical and structural innovations, our focus is always on people. We take pride in our employees’ expertise, experience, and dedication to continuous improvement. Thanks to their commitment, we can consistently deliver premium-quality vehicles,” emphasizes Weber.
Additional company expertise will be developed and retained through extensive training and workforce flexibility. Last year alone, nearly 25,000 employees completed e-mobility training.
Plant Munich is holding its third industrial electrician qualification course in cooperation with the Chamber of Industry and Commerce (IHK). Near the Munich ‘iFactory’ is a ‘talent campus’ for further education and training.
In recent years, around 5,500 jobs have been created across the BMW Group production network for the current and upcoming generation of e-drives. More than three-quarters of these positions were filled through internal reorganization.
During these last years, the manufacturing cost gradually diminished at the ‘mother plant’ in Munich. Although the plant is over 100 years old, it has only produced cars for 70 years. The venue of the Neue Klasse will bring this cost down by 10% at once, explains Weber.
This cost will have to diminish even more in future years. Thanks to virtualization, AI, and robotics, digitization will play a significant role here,” Weber concludes.
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