How BMW is Shifting to Electric Car Manufacturing in Austria

BMW Group has initiated the series production of its sixth-generation electric engines at Plant Steyr in Austria.

This milestone marks a progression in the company's energy strategy, focusing on electric vehicle (EV) innovation and sustainability.

The site has long been integral to BMW’s global powertrain operations.

This shift to fully electric drive production underscores BMW's pledge to its Neue Klasse platform and its broader vision for sustainable mobility.

Renewing a legacy

For over four decades, Plant Steyr was synonymous with combustion engine expertise, powering one in two BMW and MINI vehicles worldwide.

Now, the facility is moving towards electric drive manufacturing.

It has undergone extensive renovations, including new production halls, modernised infrastructure and re-engineered processes.

“Three years ago, we announced that we would build this electric engine in Steyr,” says Klaus von Moltke, Head of Engine Production at BMW AG and Plant Director at Steyr. 

“Today, we are proud to deliver it.  What we are launching here today is more than just a production ramp-up: it is a firm commitment to Europe, to technology and to the future.”

The new electric assembly line is set to employ about 1,000 workers, with up to half of the site’s 4,900 employees potentially moving to e-mobility roles in the coming years.

Technological gains in efficiency

The Gen6 electric engine is engineered to advance vehicle efficiency.

Compared to previous models, it reduces energy loss by 40%, lowers costs by 20% and cuts weight by 10%, resulting in an overall efficiency gain of around 20%.

Plant Steyr will manage the production and assembly of all vital components, from rotors and stators to transmissions, housings and inverters, with certain parts like housings being supplied from BMW’s Plant Landshut.

“Today we are laying the foundations for the future of the BMW Group,” says Milan Nedeljković, BMW AG Board Member for Production. 

“As the first production site for the Gen6 electric engine, Plant Steyr is central to the Neue Klasse and the continued development of our global production network.”

Local value creation through innovation

This transformation reflects BMW's strategy of merging technological innovation with regional value creation and ensuring long-term job security.

“The new electric engine is made with innovative manufacturing processes,” says Helmut Hochsteiner, Head of Electric Engine Production in Steyr.

"Implementing them takes perfect planning, experience and expertise, which is why we scaled up component production and the manufacture of the entire drive to industrial level ourselves, here in-house.”

The commencement of Gen6 electric engine production at Plant Steyr signifies a crucial development in BMW's commitment to energy-efficient technologies and sustainability, aligning with global trends of eco-friendly transportation solutions and regional economic growth.