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MIL OSI Translation. Region: Germany / Deutschland –

Source: BMW Group

Consistent transformation towards electric mobility +++ Investment of 400 million euros in new assembly for the main plant in Munich +++ Fixed cost reduction of 500 million euros +++ New cluster vehicle architecture from the middle of the decade +++ Intelligent plant occupancy strengthens the competitiveness

Munich. The BMW Group continues to accelerate towards electromobility and is strengthening its global production network for the manufacture of electrified vehicles. The company is investing 400 million euros in a new vehicle assembly facility for the main Munich plant and is bundling its European production for internal combustion engines at the Steyr and Hams Hall locations. “We are consistently implementing our electrification strategy. Each of our German plants will produce at least one fully electric vehicle by the end of 2022, ”says Milan Nedeljković, Member of the Board of Management of BMW AG for Production.

The BMW Group has one of the world’s most flexible production systems in the automotive industry. “We are able to manufacture vehicles with both combustion and electric drives on one line and react flexibly to customer requests,” says Milan Nedeljković. “That is a decisive success factor.” 51-year-old Nedeljković has been responsible for the production department for over a year. “During the Covid-19 crisis, we proved that we can react quickly and effectively even to highly volatile market developments and at the same time improve our cost structure sustainably,” emphasizes the production director: “With the progress made this year, we will be ours by the end of next year Reduce fixed costs by around half a billion euros. “

The BMW Group is consistently pursuing the future orientation of its main plant in Munich. After expanding the body shop and building a new, resource-saving paint shop between 2016 and 2018, the company is now investing around 400 million euros in new vehicle assembly by 2026. “We are continuously developing the Munich plant in the direction of electromobility and are creating efficient and competitive production structures for this,” explains Nedeljković. “This decision is a strong commitment to Munich as a location.”

Manfred Schoch, Deputy Chairman of the Supervisory Board and Chairman of the Euro and General Works Council of BMW AG: “With the decision to build a new assembly in the almost 100-year-old Munich plant, we are showing that transformation, if it is tackled strategically and courageously, industrial jobs too secure and expand in the middle of a big city. This decision is a model for a successful transformation in German industry. “

The future assembly and its manufacturing processes will be designed for a new cluster architecture that is geared towards electric drives. Nedeljković: “This architecture will be used from the middle of the decade. It will be launched for the first time in our future plant in Debrecen, Hungary, and then rolled out step by step in the global production network. “

The new Munich assembly is being built on the site of today’s engine construction. The internal combustion engines with four, six, eight and twelve cylinders manufactured there will in future be produced at the locations in Steyr, Austria and Hams Hall, UK. “With the restructuring of our engine manufacturing network, we are acting strategically and with foresight. We are also increasing our efficiency and making optimal use of our capacities, ”explains Nedeljković.

The relocation of the Munich engine manufacturing facility will take place gradually by 2024 at the latest. In future, the employees will work in other planning and production areas at the Munich location or at other Bavarian locations. The company is expanding the competence center for electric drive production in Dingolfing from currently 1,000 to up to 2,000 employees. “The transformation of our plants and the future of employment go hand in hand,” emphasizes Ilka Horstmeier, Head of Human Resources at BMW AG, with a view to the imminent structural change in engine construction. “Here in Munich we will again prove that the BMW workforce can change. We will provide intensive support and qualification for our employees on this path. ”Since 2009, more than 50,000 people at the BMW Group have received further training in electromobility.

Transformation of electromobility The realignment of the production network is based on three focal points: Transformation in relation to electromobility and digitization, efficiency of processes and structures, and sustainability in production and logistics. The expansion of electromobility in the production network is continuing. The Chinese plant in Dadong has been manufacturing the BMW iX3 * since this year. “By the end of 2022, all German plants will have at least one fully electric vehicle in their range,” emphasizes Milan Nedeljković. From next year, the BMW i4 in Munich and the BMW iX * in Dingolfing will roll off the production lines. In addition, the fully electric versions of the new BMW 7 Series and the future BMW 5 Series are in the starting blocks in Dingolfing. In 2022, production of the new BMW X1 will start at the Regensburg plant, which will be offered both as a combustion engine and with a fully electric drive. From 2023, the BMW Group plant in Leipzig, where the iconic BMW i3 * has been manufactured since 2013, will be producing the successor to the MINI Countryman as a combustion and fully electric version.

At the same time, the BMW Group is expanding its capacities for the production of electric drives. In the competence center for electric drive production in Dingolfing, the company is investing in production systems for the highly integrated electric drive and fifth-generation high-voltage batteries. Production facilities for battery modules and high-voltage batteries for production from 2021 are currently being set up at the Leipzig and Regensburg locations. At the same time, the company is increasing the production capacity for electric drive housings at the Steyr plant. “With this allocation, we are consciously relying on the flexibility of our plants and increasing their efficiency and competitiveness. Long-term agreements with employee representatives also contribute to this, ”says Nedeljković.

Sustainability in production Since 2006, the BMW Group has reduced resource consumption and CO2 emissions in vehicle production by 50 percent, which is significantly more than with European manufacturers. By 2025, the proportion of CO2 per vehicle will be reduced by a further 40 percent compared to 2019 and by 80 percent by 2030. “Sustainability is a fundamental component of modern production,” emphasizes Milan Nedeljković and adds: “This year, we will only use electricity from renewable energy sources in our plants worldwide, i.e. 100 percent.” The best options are used at each location – from solar energy in Oxford, Mexico and China to biogas in South Africa and wind power in Leipzig.

In addition to the use of renewable energies, consumption is continuously being reduced – for water, solvents, gas and electricity. For example, the company uses data analytics to minimize the power consumption of machines. The amount of waste generated per vehicle is also continuously falling. This makes the BMW Group one of the most sustainable automobile manufacturers in the world. This is underscored by the fact that the Dow Jones Sustainability Indices World and Europe won industry leadership in the automotive sector just a few days ago.

* Consumption / emission figures: BMW i3: combined fuel consumption: 0.0 l / 100 km; Combined power consumption: 13.1 kWh / 100 km; CO2 emissions combined: 0 g / km BMW iX3: Fuel consumption combined: 0.0 l / 100 km; Combined power consumption: 17.8-17.5 kWh / 100 km; Combined CO2 emissions: 0 g / km BMW iX: Combined fuel consumption: 0.0 l / 100 km; Combined power consumption: < 21 kWh / 100km; Combined CO2 emissions: 0 g / km. (Figures are provisional and based on forecasts)

MIL OSI

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.

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