BMW’s Shocking Move: Internal Combustion Engine Production Heads to the UK and Austria

BMW appears to be discontinuing the production of internal combustion engines, at least in Germany. The Bavarian factory is transitioning into an exclusively electric vehicle production facility, moving its internal combustion engine production facilities to the UK and Austria.

BMW has maintained that internal combustion engines coexist with electric vehicles and has invested accordingly.

BMW announced in November 2020 that it would convert its Munich factory entirely to EV production, investing 400 million euros ($474 million) to realize this. Despite this, BMW is shifting these efforts to Austria and UK factories to continue producing internal combustion engines.

German news outlet BR reported that while the contract manufacturer Steyr factory in Graz, Austria, is likely to produce V8 engines, the Hams Hall factory on the outskirts of Birmingham, UK, will account for the largest share of other internal combustion engines.

The battery-electric vehicle BMW i4 has been produced in Munich since October 2021, and the Neue Klasse (pictured above) will be made there in 2026. The iX, i7, and next-generation i5 are produced in Dingolfing, while the electric SUVs iX1 and iX2 are produced in Regensburg.

Significant investments are being made in the e-mobility sector, including constructing a battery test center at the Wackersdorf factory to test high-voltage batteries and other e-drive components. There are also plans to build an additional battery factory in the area.

BMW is striving to expand its lineup of electric vehicles while aiming for 50% of total sales by 2030. This contrasts with Mercedes Benz’s preparation to transition entirely to electric cars by 2030.