BMW to ramp up production of electric vehicles
German carmaker races to comply with EU emission standards in face of sharp slowdown in sales
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BMW is to spend more than half a billion euros on ramping up its electric vehicle manufacturing capacity in Germany, as the Munich-based carmaker races to comply with strict EU emission standards amid a sharp slowdown in global auto sales.
The company’s plant in Dingolfing, Bavaria, its largest in Europe, would be able to produce battery-powered motors and parts for more than 500,000 vehicles a year by 2022, chief executive Oliver Zipse said.
BMW, which was one of the early pioneers of battery-powered cars, previously said it was on track to meet CO2 emissions targets for 2020 and 2021 despite the Covid-19 pandemic, avoiding large fines from Brussels.
The Dingolfing factory, which devotes 10 per cent of its production capacity to plug-in hybrid models, would be expanded tenfold, Mr Zipse added, in order to help BMW achieve its goal of having a quarter of its sales in Europe of models with an electric drive option by 2021.
Four production lines would be added to the existing eight lines during the next few years, the company said. Dingolfing will also expand its production of batteries, although BMW relies on other companies for its supply of battery cells.
The premium carmaker has fallen behind rival Volkswagen in developing new battery-powered models, despite producing the i3, one of the first mass-market electric cars since 2013.
Rather than building dedicated production sites for electric cars, BMW is instead opting for a flexible platform, in which models can be fitted with either a combustion engine, a plug-in hybrid system, or a battery-powered drivetrain.
The upcoming iX3 sport utility vehicle will be among the first models to offer all three variants.
In contrast, VW is devoting entire plants to electric vehicles. Last month, the last combustion engine car rolled off a production line at VW’s Zwickau factory, the former home of the Soviet-era Trabant. The site will now manufacture the ID.3, VW’s first mass-market emissions-free model.
However, Mr Zipse defended BMW’s versatile approach. “We are firmly convinced that we will need to continue developing all drivetrain types to achieve the best possible result for the environment,” he said.
“We know that many regions around the world still lack a sufficient charging infrastructure and only a small share of the generated energy is renewable,” he added. “For many customers in these regions, combustion engines remain the best option.”
BMW aims to offer at least 13 fully electric models by 2023, the year VW plans to have sold 1m emissions-free cars.
BMW warned in May that its auto profits could be wiped out in 2020, as it suffers from the cratering demand from the Covid-19 pandemic.