BMW’s Electrifying Evolution: Munich Plant Goes All-In on E-Mobility
Profiting from Sustainability: BMW Drives Ahead with E-Mobility
BMW has been crafting top-notch automobiles for over a hundred years but, this automobile behemoth has laid its sight on the future. The BMW plant in Munich is the founder company that initially started the production of aircraft engines in 1917 and is currently undergoing a giant transformation to focus only on the manufacture of electric drives and battery components. The market of EVs is evolving at the fastest pace and customers across the globe are moving towards the purchase of battery electric vehicles. This is where BMW is placing its bet with the i7.
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Transitioning to a Major Facility
The Munich site alone has over 9,000 employees and, until now, has manufactured the engines and battery systems for BMW’s traditional gasoline and diesel-powered vehicles. However, according to recent news, it has been said that Munich will cease the manufacturing of engines by 2024.
As of 2026, the plant will only be manufacturing electric drive trains and battery assembly parts. I would describe this as a fairly rapid adaptation given that it is for such a well-established production facility.
In my opinion, it is reasonable for BMW to utilize historical assets such as those of Munich. It is cheaper in comparison to building new vehicles from the ground up, and workers are capable of transitioning their manufacturing skills to EVs. This kind of move suggests BMW wants to become as significant an electric car player as Tesla Motors.
Increasing the Manufacturing of Electric Drive Trains
BMW hopes to deliver 500,000 electric drivetrain modules per year by 2026 in Munich alone. That is a seven days a week increase from current volumes and underlines BMW’s expansion plans for EVs. The plant will produce-fifth-generation eDrives, where the electric motor, transmission, and power electronics are made in a single housing.
With the European Union targeting a complete ban on the production of gasoline cars by 2035, the development of half a million electric drive components per year appears to be quite feasible for BMW. The adaptable plant layout in Munich offers BMW the advantage of catering to fluctuations in market necessities when it comes to models.
Property, plant, and equipment under this account comprise expenditures that are directly related to the transition process, such as:
The modernization of the Munich plant is set at a value of about 400 million euros through to 2026. The money will be used for improving various types of production equipment consisting of machine tools, assembly lines, smart automation, and testing facilities catered to new electric vehicle manufacturing.
However, in my opinion, 400 million euros is well spent. The rearrangement of the existing facility is significantly cheaper compared to building a new facility with the same purpose. BMW benefits in the form of acquiring state of the art equipment while using other structures, such as buildings and power that may already be in place.
Impact on BMW’s Workforce
Another issue that Volvo will have to deal with is the fact that developing technicians and machine operators that will be able to work with electric drive trains will prove to be a challenge because the current generation of technicians and operators are used to internal combustion engines.
Thankfully, many of the aspects, such as knowledge of car design, production planning, and lean manufacturing, apply to electric cars. But workers will still need skills training so as to address some of these high-stake, complicated nature of EV parts.
In my opinion, BMW should introduce the training programs in advance. To reduce costs and improve efficiency in handling EV components, it is essential to get the staff used to the safety protocols and quality standards. Training and bringing back experienced workers will also ease the resistance to change towards the company’s new electrified direction.
As their importance becomes more widely recognized, electric vehicles are set to advance to the next level.
The traditional BMW blue and white emblem is gracing hundreds of thousands of cars that run on gasoline annually. However, it will not be long before electric motors instead of internal combustion drive the Ultimate Driving Machines.
With Munich as its home base, which is where BMW has termed its roots with a century-old tradition BMW now aims to become equally famous for electric vehicles. By transforming the headquarters to electric mobility, BMW places itself in an advantageous position to dominate the EV battles in the forthcoming decade.
However, in BMW’s case, I believe that moving towards electrification at such a fast pace is a new benchmark among traditional automakers. Some competitors, such as Mercedes-Benz and Audi, have not shifted focus fully away from traditional powertrains. Munich’s transformation places BMW years ahead as consumers clamor for electric cars. All the best to the organizers and participants for leaving the competition behind!
Source: www.press.bmwgroup.com
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Eduard Huma
Eduard is an English teacher, and in his spare time, he writes news and reviews about BMW cars on our website. He is passionate about blogging and likes to write about news from the automotive industry. In his free time, he likes to go for walks with his family and to have a beer with his friends in the evening.
