Munich/Shenyang. BMW Brilliance’s Shenyang Production Base reached another significant milestone with the official roll-off of its 7 millionth vehicle. This achievement not only reflects the BMW Group’s long-standing commitment to the Chinese market and its continued investment in Shenyang, but also marks a new phase in intelligent manufacturing, local innovation, and future production capabilities.

“For more than 30 years, we have been deeply rooted in China. The seven-millionth BMW vehicle from our plant in Shenyang is a significant milestone in this success story: it demonstrates the strength of our local production – and it reflects the high level of expertise, the great dedication, and the exceptional commitment of our Chinese team,” says Raymond Wittmann, Member of the Board of Management of BMW AG, Production.

“With the start of local production of the Neue Klasse later this year, we are opening the next chapter and starting a new era for BMW in China.”

“Seven million vehicles are far more than just a number — they represent seven million times that Chinese customers have chosen and trusted BMW. Beyond excellent products, we have also built in Shenyang a future-proof production system, strong local competences, and an exceptional team whose expertise drives our innovation and success in China. Building on this strong foundation, we are accelerating into a new era through innovation, deeper localization, and intelligent manufacturing, opening the next chapter of BMW’s development in China.” said Ms. Birgit Boehm, President and CEO of BMW Brilliance Automotive Ltd.

The milestone vehicle that rolled off the line is the BMW 3 Series Horse Edition. It not only showcases BMW’s agility in responding to the Chinese market but also highlights the outstanding cross-functional collaboration across R&D, purchasing, and manufacturing at the Shenyang Production Base, as well as its ability to deliver stable, high-quality output in a highly competitive market environment.

Deeply Rooted in China: Building a New Benchmark for BMW iFACTORY

From the roll-off of the first locally produced BMW vehicle in 2003 to today’s 7 millionth milestone, BMW has established a comprehensive system in China covering complete vehicle and powertrain manufacturing, localized R&D, and a localized supply chain, making it one of BMW’s most important production and innovation hubs worldwide.

The vision of the BMW iFACTORY serves as a powerful guiding principle for the BMW production worldwide. BMW’s long-term commitment to Liaoning Province and Shenyang continues to translate into a future-oriented, high-quality production system and strong local innovation capabilities, further strengthening the company’s long-term development foundation in China.

Digitalization and AI Driving the Next Level of Smart Manufacturing

As a key practice hub for BMW’s global intelligent manufacturing, digitalization and AI technologies have been widely integrated across all production processes at the Shenyang Production Base. Through intelligent applications, the base continuously enhances production efficiency, quality management, and operational coordination, achieving more efficient, stable, and high-quality manufacturing operations.

This development direction is also highly aligned with China’s ongoing efforts to advance new industrialization and foster new quality productive forces. Leveraging its Shenyang Production Base, the BMW Group continues to drive the deep integration of intelligent manufacturing, digitalization and sustainability, setting a benchmark for high-quality development in the premium automotive manufacturing sector while also contributing to local supply chain upgrading and the cultivation of highly skilled talent. This demonstrates BMW’s long-term confidence in China and its continued commitment to supporting the high-quality development of China’s manufacturing industry.

Building Core Capabilities for the Neue Klasse, Accelerating Toward New Era

BMW Shenyang Production Base continues to promote employee upskilling and capability transformation, fostering a professional workforce tailored to the future of the automotive industry. This provides sustained support for new technologies, new products, and new production models, while continuously contributing “China experience” to the BMW global production network.

At the same time, centered around the local production of the Neue Klasse models, BMW Shenyang Production Base is comprehensively advancing upgrades in its production system, digital architecture, and supply chain collaboration capabilities. Leveraging a higher level of flexible manufacturing, AI-powered quality management, and a highly connected digital production network, the Shenyang Production Base is laying a solid foundation for the local production of Neue Klasse models while further strengthening BMW’s overall competitiveness in electrification, digitalization, and sustainability — continuing to lead the future of premium automotive manufacturing.

Munich. BMW Group Plant Munich is approaching the biggest milestone in the transformation process: series production of the BMW i3, the second model in the Neue Klasse range, gets underway here in August. This marks the start of the rollout of the Neue Klasse within the BMW Group’s global production network.

“We have been making rigorous preparations. With the BMW iFACTORY we have devised a consistent, strategic framework for our production,” explains Milan Nedeljković, Member of the Board of Management of BMW AG, Production. “We have paved the way for the upcoming start-ups in all our plants and have invested heavily in technologies, digitalisation and AI.”

BMW Group Plant Munich has undergone extensive modernisation in recent years. The result is a plant that now works even more efficiently, flexibly and digitally, and is optimally positioned for the requirements of electric mobility and the Neue Klasse.

But that’s not all: as of 2027, the Munich plant will exclusively produce all‑electric vehicles and thereby achieve a further boost in efficiency. This is assisted by proactive planning, close collaboration with development teams and suppliers, as well as modern production technology in the new structures. “We have considerably reduced production costs over recent years. With the start of production of the BMW i3, we will reduce overall production costs at the Munich plant by a further 10 per cent, bringing them below the level of the current vehicle generation,” says Peter Weber, Head of BMW Group Plant Munich. In addition to optimised production processes and targeted automation and digitalisation, the new vehicle architecture of the Neue Klasse also ensures efficiency.

Plant Munich is investing around 650 million euros in its transformation into a fully electric production site.

Highly efficient production at historic site

Plant Munich has been consistently reinventing itself for more than 100 years – from a location outside the city to today’s site surrounded by it. The facility has undergone a fundamental process of redevelopment for the Neue Klasse – with production of up to 1,000 vehicles a day continuing during this period. A new body shop and state-of-the-art vehicle assembly including new logistics areas were set up on an area spanning around a third of the plant’s footprint. Extensive updates have also been made to existing technologies.

Plant manager Peter Weber highlights what the workforce has achieved: “The people at the factory played an essential role in making this transformation a success. With their high level of expertise, enthusiasm and tremendous dedication, our employees have shown that world-class industrial production is possible even under the toughest conditions. The BMW i3 is just the beginning – several Neue Klasse models will be manufactured in Munich in the future, including the BMW i3 Touring.”

A vision for all technologies: the BMW iFACTORY

The BMW iFACTORY focuses on the areas of efficiency, sustainability and digitalisation. Within this framework, the company’s plants around the world are implementing site-specific solutions and, in so doing, strengthening the company’s resilience as well as its ability to deliver reliably at any time and worldwide. This vision has now also been consistently implemented across all technologies at BMW Group Plant Munich.

“We have rethought the entire value stream from supplier to finished customer vehicle. We have looked at every single process in detail and made optimisations. Now our plant is even more efficient, more flexible and even more digitised than ever before. We are thereby safeguarding the future viability of the plant,” adds Peter Weber.

In the press shop, steel and aluminium boards are turned into tens of thousands of components on highly automated press lines daily. Uniform press and tool standards across the global production network result in efficiencies on many levels: installation and integration of the systems are standardised, tools for the presses can be swapped within the network, and employees can work at various locations and help each other. An AI-assisted camera system supports quality control before an underground transport system moves the parts to the body shop. Output has increased significantly compared with previous structures. Cuts of steel and aluminium are collected, sorted and then used to manufacture new steel or aluminium coils.

Plant Munich has set up a new body shop for the Neue Klasse featuring systems planned and realised using a virtual twin. A total of 800 new industrial robots take care of the joining processes here; decreasing the number of joining processes to five reduces process complexity. With an automation rate of around 98 per cent, robots perform the majority of standardised processes. Automated surface inspection (ASI) assists with quality assurance.

In the paint shop at Plant Munich, digital and AI-assisted systems control central quality processes. Automated surface inspection (ASI) uses cameras and artificial intelligence to detect even the most minor deviations on the surface and documents them digitally. Automated surface processing (ASP) works on the variations detected directly during the running process. To purify the exhaust air, the paint shop uses the energy-efficient, electrically powered eRTO process. This is complemented by heat and energy recovery as well as water-saving cycles.

What once was the home of engine manufacturing at BMW Group Plant Munich has become a new assembly area for the Neue Klasse. The assembly area is set up for end-to-end digital processes: vehicles, systems and tools are interconnected and digital live tracking and automated inline quality checks support employees in the assembly line process. During assembly already, the BMW i3 digitally transmits the status of up to 20,000 features to the production system. Ergonomic workstations, height-adjustable systems and simplified processes lighten the load for employees, while targeted training supports new digital fields.

Aspart of the transformation, logistics at BMW Group Plant Munich has focused squarely on efficiency and direct integration of production. The logistics department at the Munich plant moves around 2.5 million parts every day; in future around 70 per cent of these parts will be delivered directly to the assembly workstations. This will reduce internal transport distances, save space and accelerate supply to the production lines. This is made possible by a multi-storey building structure developed specially for the plant’s city location. Delivery is at ground level and then conveyor technology transports the parts to the right levels, where they are distributed directly to the assembly workstations. This enables the principle of direct delivery to be applied systematically even in a multi-storey plant. At the same time, the level of automation in logistics has been significantly increased. Automated supply systems, smart transport robots and driverless transport systems will handle around 60 per cent of supply tasks in the future. A digital logistics control station manages all processes centrally, ensuring transparency and data-driven optimisation.

Unique to Plant Munich is the in-house seat manufacturing facility. It is a “plant inside a plant” and takes on a central role for quality assurance and expert evaluation within the production network. The seats for all versions of the models produced in Munich are manufactured here and delivered to vehicle assembly directly and “just in sequence”. The in‑house seat manufacturing facility is regarded as the benchmark for quality assurance across the BMW Group. Modern, largely automated processes ensure seamless quality control. This is complemented by fully automated end-of-line checks, including for safety-relevant components. The seat manufacturing facility also systematically strengthens the BMW Group’s in-house expertise. It serves as a competence centre and innovation hub, tests new materials, technologies and manufacturing concepts, and supports the evaluation of costs, quality and production processes – making an impact far beyond the Munich location.

Global network, regional value creation: high-voltage batteries and e-drive

With the new assembly plant for high-voltage batteries in Irlbach‑Straßkirchen (Lower Bavaria, Germany) around 90 minutes away, the BMW Group is significantly boosting value creation in the Bavaria region. In keeping with the “local for local” approach, Irlbach-Straßkirchen will deliver high-voltage Gen6 batteries to the Munich plant as well as other German locations. Here, the batteries will be installed in the BMW i3. Manufacture of the high-voltage batteries combines a rigorous zero-defect approach with the latest production technologies, which were developed at Bavarian pilot plants. With seamless inline quality controls, digital twins and the systematic use of artificial intelligence, the BMW Group is setting new standards in battery production.

The Gen6 e-motor for the BMW i3 is produced at BMW Group Plant Steyr in Austria – a location that has been manufacturing drivetrains for over 40 years. With the first e-motor in the portfolio, the plant is developing its role as a prime example of technology openness. All core components of the highly integrated e-drive – from the rotor and stator to the inverter and transmission – are produced on-site. New production lines and state‑of‑the‑art clean room environments have been set up for this. The aluminium foundry at BMW Group Plant Landshut supplies the e-motor housing for Plant Steyr.

Munich/Wackersdorf. The BMW Group is relocating its Recycling and Dismantling Centre (RDC) from Unterschleißheim to the company’s Wackersdorf site, with a significant expansion. At the new location, a technologically state-of-the-art competence centre for circularity is being built, advancing vehicle dismantling and recycling expertise for the future. Commissioning is scheduled for early 2029.

“The circular economy is a key element of the BMW Group’s corporate strategy,” says Jörg Lederbauer, Vice-President Circular Economy, Spare Parts Supply High Voltage Battery and Electric Powertrain at the BMW Group. “Our new competence centre in Wackersdorf will be a core component of our circular value chain and will help make the mobility of the future more resource efficient. We want to find the best way to keep materials in the cycle, ensuring that resources retain their value for further use in the long term. This will also reduce our dependence on primary raw materials. At the same time, the use of high-quality secondary materials will continue to significantly lower our vehicles’ carbon footprint.”

For more than 30 years, at its current location in Unterschleißheim, near Munich, the BMW Group Recycling and Dismantling Centre (RDC) has developed methods aimed at achieving significant advances in the recycling of parts and the recovery of materials, and has tested them in practice. The insights gained by the RDC into the recyclability of components and materials, in line with Design for Circularity principles, are already incorporated into product development at the BMW Group. These insights also feed into the cooperation with PreZero, which the BMW Group recently entered into in order to leverage the strategic and economic potential of the circular economy in end‑of‑life vehicle recycling. 

The recycling industry’s global network also benefits from the work of the RDC. Around 3,000 businesses in 32 countries rely on a shared recycling database for information on how recyclable components can be disassembled cost-effectively and valuable materials efficiently recovered.

At the future site, process, material and technology development will be even more closely integrated with vehicle recycling operations. The new scope of activities at the Competence Centre Circularity includes the recycling of hydrogen vehicles, automation of dismantling processes and development of expertise in innovative shredding and sorting technologies.

The BMW Group sees Wackersdorf as the ideal new location for the Competence Centre Circularity, with BMW Group Plant Wackersdorf having embodied flexibility for decades: Housing cockpit production, the Rolls-Royce door and flap production centre, parts supply for overseas plants and the battery testing centre, the site has wide-ranging expertise and is firmly established within the BMW Group network.

“In recent years, the company has set a decisive course for the future of the Wackersdorf location. Throughout this process, the entire plant team has consistently demonstrated flexibility. Building the competence centre for circularity here provides our site with a broader foundation. In this way, we are tapping into an attractive, future-oriented area of activity,” says Stefan Betz, head of BMW Group Plant Wackersdorf.

“The company is systematically continuing its successful transformation. Establishing the new Competence Centre Circularity here represents an important strategic decision by the company in favour of the Wackersdorf location – and, above all, its employees. As employee representatives, we also supported this,” says André Mandl, Works Council Chairman for BMW Group Plants Regensburg and Wackersdorf.

“In Wackersdorf, BMW has been a strong partner by our side for many decades. We are delighted that the BMW Group is reaffirming its commitment to the location with this move. It sends a clear signal for our site and for sustainable future technologies,” says Thomas Falter, Mayor of Wackersdorf.

“The cutting-edge Competence Centre Circularity will make a major contribution to regional value creation and further development of the circular economy,” adds Thomas Ebeling, District Administrator of Schwandorf District. “In combination with the trechnology transfer centre planned for Wackersdorf by the Regensburg University of Applied Sciences and the University of Applied Sciences Amberg Weiden, close integration of business and academia on the circular economy will now also be possible. In this way, we are strengthening the region.”

Following the location decision, the detailed planning phase for the Competence Centre Circularity at the new site can now begin. The existing RDC in Unterschleißheim will remain fully operational until the relocation. The BMW Group will provide further information on the next steps in due course.

Munich. As part of its electromobility expansion, the BMW Group is deepening its existing business relationship with Ganfeng Lithium Co., Ltd. based in Jiangxi (China). The two companies have signed a supply contract for the lithium needed as a key raw material for battery cells. “The projected order volume totals 540 million euros. In this way, the BMW Group is securing 100% of its lithium hydroxide needs for fifth-generation battery cells in its high-voltage batteries,” said Dr. Andreas Wendt, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network.
The contract is for a term of five years (2020 – 2024).

“Alongside cobalt, lithium is one of the key raw materials for electromobility. With the signing of this contract, we are securing our lithium needs for battery cells,” continued Wendt. “We aim to have 25 electrified models in our line-up by 2023 – and more than half will be fully electric. Our need for raw materials will continue to grow accordingly. By 2025, for lithium alone, we expect to need about seven times the amount we do today.”

Sustainability and security of supply are important factors in the expansion of electromobility. For the BMW Group’s purchasing experts, ethically responsible raw material extraction and processing begins right at the start of the value chain: They are intensively involved throughout our battery cell supply chains – all the way down to the mines themselves. Compliance with environmental standards and respect for human rights have absolute priority. “Sustainability is an important aspect of our corporate strategy and plays a central role in expanding electromobility. We are fully aware of our responsibilities: Lithium and other raw materials must be extracted and processed under ethically responsible conditions,” underlined Wendt. Ganfeng extracts lithium by mining so-called hard-rock deposits in Australia under the strictest sustainability standards.

The BMW Group already publishes the countries of origin of the cobalt it uses on its website (see here). For the upcoming fifth generation of battery cells, the company has also restructured its supply chains and will be sourcing both lithium and cobalt directly from 2020, making the raw materials available to the two battery cell manufacturers, CATL and Samsung SDI. This ensures full transparency over where raw materials come from. Cobalt will be sourced directly from mines in Australia and Morocco in the future. Supply contracts will ensure the company’s security of supply up to 2025 and beyond.

The BMW Group also recently announced that it is increasing the order volume for battery cells from CATL to 7.3 billion euros (contract: 2020 to 2031) and also signed a long-term contract worth 2.9 billion euros with Samsung SDI for its fifth-generation electric drive trains (contract: 2021 to 2031). “In this way, we are securing our long-term battery cell needs. Every cell generation is awarded in global competition to the leading manufacturer from both a technology and a business perspective. This ensures we always have access to the best possible cell technology,” added Wendt.

The BMW Group's fifth-generation electric drive trains from 2021 on will also be produced entirely without using rare earths. “This means we will no longer be dependent on their availability,” emphasised Wendt.

Extensive in-house expertise throughout entire value chain for battery cell technology

The BMW Group possesses extensive in-house expertise throughout the entire value chain for battery cell technology. In-house battery production takes place at BMW Group Plants Dingolfing (Germany) and Spartanburg (USA), and at the BBA plant in Shenyang (China). The BMW Group has also localised battery production in Thailand and is working with the Dräxlmaier Group in this area.

In mid-November, the company opened its Battery Cell Competence Centre in Munich. The aim of the competence centre is to advance battery cell technology and introduce it into production processes. The company is investing a total of 200 million euros in the location, which is set to create up to 200 jobs. The production of battery cell prototypes makes it possible to fully analyse and understand cell value creation processes. “Whether we set up our own standard production of cells at a later date will largely depend on how the supplier market develops,” according to Wendt.

The BMW Group has formed a joint technology consortium with Swedish battery manufacturer Northvolt and Umicore, a Belgian developer of battery materials, for the purpose of developing the cell technology crucial to electromobility. The cooperation will focus on creating a complete, sustainable value chain for battery cells in Europe, extending from development and production all the way to recycling. Recycling of battery components plays a decisive role in closing the materials cycle as far as possible and maximising reuse of raw materials as demand for battery cells grows.

BMW Group is a pioneer in electromobility – 25 electrified models by 2023

The company will have 25 electrified models in its line-up by 2023. The basis for this is provided by flexible vehicle architectures for fully-electric vehicles, plug-in hybrids and models with combustion engines that enable the company to respond quickly to changing conditions. More than half of the 25 models will be fully electric. The BMW Group will double its sales of electrified vehicles between 2019 and 2021. The company expects to see a steep growth curve up to 2025: Global sales of electrified vehicles should increase by an average of over 30 percent every year. In Europe, the company is also following an ambitious growth logic: The aim is to increase the percentage of electrified vehicles in the new vehicle fleet to a quarter in 2021 and to a third in 2025; by 2030, they should account for half of sales volumes.

As an e-mobility pioneer, the BMW Group is already a leading supplier of electrified vehicles. By the end of 2019, the company aims to have more than half a million vehicles with fully-electric or plug-in hybrid drive trains on the roads. Within two years, the BMW Group will offer five fully-electric series-production vehicles: Alongside the BMW i3*, with more than 160,000 units built to date, this year will see the start of production of the fully-electric MINI* at Plant Oxford. This will be followed in 2020 by the fully-electric BMW iX3 from Shenyang (China) and, in 2021, by the BMW iNEXT, which will be produced in Dingolfing, and the BMW i4 from Plant Munich.

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Corporate Communications

Saskia Eßbauer, Corporate Communications

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Internet: https://newsroom.bmwgroup.com/global/en

Email: presse@bmwgroup.com

The BMW Group

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles and also provides premium financial and mobility services. The BMW Group production network comprises 31 production and assembly facilities in 15 countries; the company has a global sales network in more than 140 countries.

In 2018, the BMW Group sold over 2,490,000 passenger vehicles and more than 165,000 motorcycles worldwide. The profit before tax in the financial year 2018 was € 9.815 billion on revenues amounting to € 97.480 billion. As of 31 December 2018, the BMW Group had a workforce of 134,682 employees.

The success of the BMW Group has always been based on long-term thinking and responsible action. The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy.

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