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BMW Munich: Neue Klasse Reloaded

BMW continues to grow: This is why, in addition to the new plant in Debrecen, Hungary, the main plant in Munich will also be completely renovated.

At a press conference, Alexander Bilgeri, responsible for Communication, Human Resources, Production, Procurement, Sustainability, Plant Manager Peter Weber, and the responsible person of the Neue Klasse, Mike Reichelt (from left to right), answered questions. | Photo: G. Soller
At a press conference, Alexander Bilgeri, responsible for Communication, Human Resources, Production, Procurement, Sustainability, Plant Manager Peter Weber, and the responsible person of the Neue Klasse, Mike Reichelt (from left to right), answered questions. | Photo: G. Soller
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Gregor Soller

Starting in 2025, the SUV variant of the "new New Class" will roll off the production line in Debrecen, and from early 2026 at the main plant in Munich, where the series production will start with the sedan. Major renovations are already underway – we were on site and learned a lot of new details between the lines.

The traditional main plant, which has existed at this location since 1922, will produce the sedan of the New Class from 2026. And already a year later, the plant will manufacture exclusively all-electric models. Thus, the Munich plant is the first location in the existing production network of the BMW Group to successfully complete the transformation to e-mobility by the end of 2027. Interesting: The New Class will be built exactly where the "old New Class" once rolled off the line, in Hall 140, which will soon become the ex-hall, as plant manager Peter Weber explicitly explained, after this event the bulldozers will arrive to tear down the buildings once erected for the "New Class." Meanwhile, 1,000 cars are produced daily next door...

"The Munich plant is an excellent example of our ability to transform. We are investing 650 million euros here and will begin producing exclusively all-electric vehicles at our main plant by the end of 2027," explains Milan Nedeljković, Head of Production at BMW AG, proudly adding:

"In the past year alone, six all-electric models were launched, and we simultaneously achieved a production record. This demonstrates within our production network that we deliver and simultaneously shape the future."

He explained the question about Gigacast processes as follows: For the new class, they have decided to use steel again because it is easier to source and separate in pure grades. Material cycles are also important to him. Currently, with aluminum, there are many alloys that cannot be separated into pure grades. Moreover, Gigacasting is nothing new, but the advantages did not outweigh the disadvantages...

Additionally, he said, one must always consider multiple dimensions in recycling besides the materials themselves, including the return and to what extent material cycles can be closed, a point the entire auto industry is currently working on - especially with regard to the raw materials for battery production.

Steel instead of aluminum? Nedeljković also has an explanation for this: With H2 steel, there is much greater potential to reduce the CO2 footprint compared to aluminum.

He answered the question of how much cheaper the new class could be produced with a statement he had made before: Between 2019 and 2025, they want to reduce production costs - that’s the costs of employees divided by the vehicles - by 25 percent. And they are on track despite inflation.

Contrary to popular belief, e-mobility is not a job killer, and BMW still has not reduced jobs. The plant in Hungary is to be understood as an "add-on," as they see themselves as a manufacturer with further growth potential. First, the SUV will roll off the line in Debrecen while Munich builds the sedan. The sedan is currently digitally completed and undergoing initial virtual tests.

And the number of e-cars is expected to exceed the 500,000 mark by 2025. "That's what I can say," explained the cheerful Head of Production, immediately adding: "Is that enough? No!" He was also aware, but did not dare to make a more precise forecast due to the huge market volatility.

The statements about the drive system, which can account for 40 to 50% of the costs in combustion engines, were also exciting. Electrics are still more expensive because significant investments are still necessary in the areas of range and charging time, which make the products more expensive – but also so much better. Mike Reichelt, lead responsible for the New Class, admitted that he is now a "dedicated electrician," but one must have a wallbox at home. For the frequent driver who covers 150 km plus x per day, it is more practical because the wallbox suits this purpose and saves trips to the gas station!

Peter Weber added:

"Here in Munich, the heart of BMW beats. The Munich plant is innovative and adaptable. As in the 1960s, a New Class is once again laying the foundation for the reinvention of our plant. This comprehensive transformation in ongoing operations alongside current production of around 1,000 vehicles per day is lived practice in Munich and is based on the outstanding performance of all employees. We are very pleased that we – starting with the sedan of the New Class – can lead the Munich plant into an all-electric future."

The era of internal combustion engine automobiles from Munich ends in 2027

The BMW Group Plant Munich is a prime example of the seamless transition into the era of electromobility. In 1952, the first passenger cars rolled off the line with the 501 (pre-war production was in Eisenach), in 1962 the "New Class" began, and in 2015 the first plug-in hybrid models of the BMW 3 Series were produced on the same line as combustion vehicles. Since 2021, the BMW i4 has also been produced as the first all-electric vehicle on the same production line. Interesting: Today, already every second vehicle produced daily has an all-electric drive.

The production of the New Class will initially run parallel to the current models from 2026 at the Munich plant. Just over a year later, at the end of 2027, the Munich plant will be the first existing and then accordingly transformed plant within the BMW Group's global production network to exclusively manufacture all-electric vehicles. Thus, 75 years after the introduction of the BMW 501 in 1952, the era of internal combustion engine vehicles in Munich will come to an end.

The production of New Class vehicles will also take place after the start at the new plant in Debrecen, Hungary, as well as in Munich, in Shenyang, China, and San Luis Potosí, Mexico.

Extensive renovation offers BMW "long-term site security"

The BMW Group's Munich plant has experienced many changes in its more than 100-year history and has repeatedly reinvented itself. In addition to the former switch from aircraft engine production to automotive manufacturing, the successful introduction of the New Class in the 1960s is a milestone in the company's history. Currently, several major construction sites are simultaneously causing a break at the Munich plant and paving the way for the launch of the New Class from 2026. The investment of 650 million euros includes a total of four buildings, including a new vehicle assembly including logistics areas and a new body shop. The halls, as Weber explains, are always built “from the front to the back” and quickly equipped. A build-up as in the past, when construction was from the bottom up, would not be possible today. Additionally, besides the approximately 800 trucks a day, 200 to 300 construction vehicles had to be integrated into plant traffic. A mammoth task.

To create the necessary space in the limited area of the plant in the middle of Munich, the traditional engine production was relocated to Hams-Hall in the UK and Steyr in Austria after about 70 years at the main plant. Therefore, the "Bayerische Motorenwerke" should actually be called "Anglo-Austrian Motor Works" and strictly speaking, BÖMW...1,200 employees have meanwhile been retrained for other production activities in Munich or have taken up new jobs at other locations in the production network.

The current transformation of the BMW Group plant in Munich is being carried out, as it was in the 1960s and during all subsequent changes, during ongoing production. Regardless of the construction measures, nearly 1,000 vehicles roll off the assembly line daily, including the BMW 3 Series and the BMW i4 – all on the same production line.

Digitalization at the Munich plant according to the principles of BMW iFACTORY

The principles of the BMW iFACTORY are intended to guarantee maximum flexibility, as well as, according to BMW, "excellent processes and outstanding integration capability" at all locations – from the completely new plant in Debrecen to the more than 100-year-old main plant in Munich, where the transformation is in full swing. The BMW iFACTORY represents the outstanding production competence of the entire manufacturing network.

An important component, according to Weber, is comprehensive digitalization with a holistic approach to the interplay of people, processes, and systems. If even one point is not met, it will not work. It optimizes processes and is intended to support employees in their activities. Implementation is carried out in three thrusts: Data Science, Artificial Intelligence (AI), and Virtualization.

What does this mean?

The "Neue Klasse" is one of the largest investments and conversions in the history of the BMW brand. This transformation to new mobility is accompanied by the fact that NOW is simply the right time for it.

 

Translated automatically from German.
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