BMW is making a major bet on Germany, committing around €2 billion to prepare its factories for the next-generation 3 Series.
Around €1 billion will upgrade the Munich and Dingolfing plants, while another €1 billion is being invested in a new battery facility in Bavaria. Munich will switch to building only electric cars from 2027, starting with the new i3.
At the centre of BMW’s plan is the eighth-generation 3 Series, a model that has defined BMW for decades. The electric i3 will be built in Munich, while petrol and plug-in hybrid versions will come from Dingolfing.
The new battery plant is equally important. It will supply BMW’s sixth-generation high-voltage batteries to Munich, keeping a key part of EV production within Germany.
The timing is particularly interesting. BMW is investing heavily at home while cutting around 8,000 jobs in Germany and offering voluntary redundancy to about 40,000 employees. Its rivals are reducing production capacity. Volkswagen is considering major capacity cuts, while Mercedes is shifting more investment towards its Hungarian operations.
BMW clearly believes its factories are worth protecting. Instead of simply moving production elsewhere, the company is targeting management layers, development times and costs while continuing to invest in German manufacturing.
Source: European Business Magazine
