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BMW’s hometown Munich plant to go all-EV as ICE vehicles pass their “tipping point”

BMW says its historic plant in Munich will produce only electric cars from 2027, following a €650-million investment in expansion and upgrades, including the construction of a new vehicle assembly line and a new body shop.

BMW’s Munich plant opened in 1922, and produced motorcycles until car production began there in 1952. It currently produces the 3 Series (including the 330e and 320e plug-in hybrids) and 4 Series Gran Coupé (including the electric i4). Current production is around 1,000 cars per day.

BMW will produce the first of its Neue Klasse EVs in Munich starting in 2026.

The Neue Klasse EVs, which will feature “30% more range, 30% faster charging, and a 25% improvement in efficiency,” are set to debut in 2025. They will also be built at Debrecen, Hungary, Shenyang, China, and San Luis Potosí, Mexico.

Meanwhile, BMW expects most of its future growth to come from electric models. The automaker sold over 375,000 EVs last year, a 74% increase over the previous year. EVs accounted for 15% of total sales in 2023. The brand expects to sell more than half a million battery-electric vehicles in 2024.

“The tipping point for combustion engines was last year,” BMW’s CFO Walter Mertl recently told reporters. “Future growth will primarily come from battery-electric vehicles.” Ford and GM may foresee an EV sales slump, but Mertl is having none of it: “The current sales plateau of combustion cars will continue and then fall off slightly.”

Sources: Autocar, Electrek

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