Last week, the BMW Group further expanded its R&D footprint in China with the opening of a new R&D Center in Shanghai. China is already home to BMW Group’s largest R&D system outside of Germany, with locations in Beijing, Shanghai, Shenyang, and Nanjing.

Based on the concept of open innovation, all of BMW’s R&D functions in China have been merged together under one roof for efficient collaboration and high-speed performance.

“BMW has now built-up fully-fledged R&D competency and software development capabilities for full-stack ICV development in China, putting the company in the perfect position to further implement its China strategy,” the press release states.

Growing Chinese influence

Frank Weber, the Board member responsible for Development at BMW AG, said: “The Neue Klasse of BMW will redefine driving pleasure. With our fascinating products and premium mobility experience, the BMW Group moves body, heart, and mind empowered by digitalization.”

“Our new R&D Center and BMW China R&D upgrade will enable us to achieve a real competence push. Within the last three years, we have tripled our forces in China. Today, more than 3 200 designers and engineers, NEV, and software specialists are creating leading-edge innovations in close collaboration with Chinese tech players, start-ups, local partners, and academia. China is the place to be. Going forward, there will be more China in our worldwide R&D organization.”

“A future-oriented R&D strategy and innovation mindset have been central to the BMW Group’s rise to its leadership position in the global automotive industry,” the press release continues. The company opened FIZ, its major R&D Center in Munich, in 1990.

Today, the BMW Group R&D network covers 17 countries. China has established the largest R&D and innovation network outside Germany, with facilities and processes as advanced as the headquarters and numerous innovation partnerships.

Under one roof

BMW believes that China is the place to be for future mobility. In April, BMW further upgraded its R&D management in China, bringing all development functions in China under one roof and the leadership of Dr. Robert Kahlenberg.

This move strengthens the synergy across different R&D functions in China and will better integrate the China R&D network and its innovation capabilities into BMW Group’s worldwide R&D organization. In addition, innovation and future trends will be scouted and assessed earlier to better meet Chinese customers’ needs.

Within BMW Group’s global R&D network, China is the only country outside Germany with full-process R&D capabilities. There are now 3 200 R&D associates in China. For example, BMW’s China R&D team has been deeply involved in the design, development, testing, and validation of the locally-produced all-electric BMW i5. And they will be deeply involved in many key aspects of developing the Neue Klasse models.

Human-machine interaction

Human-machine interaction is a vital part of the user experience. Currently, China is the only market outside Germany with Skylab, the human-machine interaction design team, and a usability lab with all core design functions, covering user experience design, visual design, usability research, and the development of human-machine interaction. The usability research team comprises designers, software engineers, cognitive psychologists, and more.

BMW emphasizes the importance of hardware-software integration in car development, with leading-edge software considered essential for a next-level user experience. In China, BA TechWorks in Nanjing will expand their software team to 500 associates by the end of 2023, with software development capabilities for full stack development of Intelligent Connected Vehicles.

BMW’s software development department was established in 2002 and is now located in Mountain View (US), Lisbon and Porto (Portugal), Munich and Ulm (Germany), Tokyo (Japan), and Shanghai, Beijing, and Nanjing (China), with over 8 000 software specialists worldwide.

Validation

China is also home to BMW’s largest testing and validation footprint outside Germany. The Shenyang R&D Centre has a global-leading electromagnetic compatibility (EMC) laboratory. BMW also owns a professional NVH laboratory (noise, vibration, harshness) in Shenyang, including an acoustic hub Dyno laboratory and outdoor test track, which can run strict noise tests outside and inside the cabin.

The High-Voltage Battery (HVB) testing lab can simulate extreme conditions to ensure high-voltage batteries’ high performance and safety in all conditions. All BMW vehicles will also undergo rigorous vehicle testing before launch at geographical locations from 71 degrees north to 25 degrees south latitude and temperatures from -40 degrees to +46 degrees.

Joint innovation

“BMW Group is a strong believer in innovation through collaboration and is constantly scouting for global innovators in new technologies and future mobility trends,” the press release adds. In 2013, BMW Group Tech Office was established in Shanghai. It focuses on the future mobility pillars of Electric, Digital, and Circular.

BMW collaborates with innovative companies and even offers platforms for innovative start-ups to enter the automotive market with the help of BMW. BMW is expanding its circle of joint innovation partners. As well as cooperating with tech giants such as Tencent, Alibaba, China Unicom, Navinfo, and Huawei, BMW also engages with China’s future tech innovators and top universities such as Tongji University and Tsinghua University.

Recently, BMW signed a Memorandum of Understanding with China Automotive Technology & Research Center (CATARC) for cooperation in the areas of intelligent connected vehicles, new energy vehicles, sustainability, vehicle safety, and more.

The two parties have agreed to conduct exchanges and discussions on policy and regulation, promote standardization in the framework of an ICV ecosystem, and advance ICV and NEV development in China together.

China, a major player

It is obvious that BMW Group has chosen a serious engagement in China, the largest single-car market in the world with a still growing influence worldwide. Other German brands follow suit, while some ‘European’ brands are already in Chinese hands.

The future will tell if this is the right way to go. Fight the Chinese tiger or embrace him? Many voices in Europe are less adamant about such large-scale cooperation, the European authorities in the first place. In any way, the Chinese will also determine the future of the automotive, whether we want it or not.