[Jason]

BIMMERPOST NEWS

BMW to Open $1.2 Billion Plant in Hungary

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July 31, 2018. Munich. The BMW Group continues to expand its production network in Europe, with a new facility to be built in Hungary, close to the town of Debrecen. It will come at an investment of approximately €1 billion, offer capacity of up to 150,000 units a year and create over 1,000 new jobs.

“The BMW Group’s decision to build this new plant reaffirms our perspective for global growth. After significant investments in China, Mexico and the USA, we are now strengthening our activities in Europe to maintain a worldwide balance of production between Asia, America and our home continent,” said Harald Krüger, Chairman of the BMW AG Board of Management. “Europe is the BMW Group’s largest production location. In 2018 alone we are investing more than €1 billion in our German sites to upgrade and prepare them for electric mobility.”

Oliver Zipse, BMW AG Board Member for Production, added: “In the future, every BMW Group plant in Europe will be equipped to produce electrified as well as conventional vehicles. Our new plant in Hungary will also be able to manufacture both combustion and electrified BMW models – all on a single production line. It will bring greater capacity to our worldwide production network. When production commences, the plant will set new standards in flexibility, digitalisation and productivity.”

Europe is the most important market for the BMW Group. In 2017 it accounted for almost 45 percent of all vehicle sales, with 1.1 million units sold. Up to the end of June 2018, the BMW Group grew in many markets across the continent, with vehicle deliveries totalling more than 560,000 units – a year-on-year rise of 1.2 percent.

The latest decision to develop the production network follows the BMW Group’s strategic principle of balanced global growth and represents the next logical step in the implementation of BMW Group Strategy NUMBER ONE > NEXT.

Competitive production site in Europe

Debrecen is the ideal place for the BMW Group to expand its production network. It was chosen primarily for its very good infrastructure, suitable logistics connections and proximity to the established supplier network. The qualified personnel in the local area were another key advantage. Besides the team at the plant itself, numerous jobs will be created with suppliers and service providers, both within the grounds of the new facility and across the local region.

The BMW Group has been operating a representative office in Hungary since 2004 and enjoys long-standing, positive relations with suppliers in the country. Last year materials and services worth €1.4 billion were purchased in Hungary.

The plant in Debrecen will set new standards in digitalisation, sustainability and flexibility. In addition, it will be a technology leader, with innovative solutions for automation, state-of-the-art assistance systems and flexible logistics applications. In keeping with the BMW Group’s principle of the highly flexible production system, the new facility will manufacture conventionally as well as electrically powered vehicles, all on a single production line.

[drew_larson]

Electric is cool and all but please stop

[530iDriver]

Originally Posted by drew_larson

Electric is cool and all but please stop

Why?

[SoCali E36]

Originally Posted by drew_larson

Electric is cool and all but please stop

Why would they stop? It's one of the best things to happen to cars. Just as long as they offer both platforms to consumers, I don't see an issue with it.

[Macphisto]

The future is electric and I have no problems adapting to it.

[TheBingoBalls]

Originally Posted by drew_larson

Electric is cool and all but please stop

So you want BMW to stop R&D/manufacturing processes on anything electric...while everyone else is moving forward with it. Makes sense. Let BMW remain stagnant in something that is likely going to be a major factor/component in all future automobiles.

[ADS-UK]

Might not be the only production site BMW needs, if Brexit goes badly. Let's hope sense will prevail and UK exits with a decent deal.

[F32Fleet]

Originally Posted by drew_larson

Electric is cool and all but please stop

ICE is being legislated out of existence. They must adapt.

[drew_larson]

Originally Posted by SoCali E36

Why would they stop? It's one of the best things to happen to cars. Just as long as they offer both platforms to consumers, I don't see an issue with it.

I dont mind the hybrids but im not fully sold on the full electrics. Unless they start ramping up the hp and torque figures to a competitive level

[raym3cs]

i wana be able to hear what i drive ...

[zamboni]

The battery weight & charging time is the main issue on hybrid & electric vehicle, take a look at the 3 series hybrid which is 400 lbs heavier than regular F30 beside it would take time to charge up the battery. I almost end up getting the 3 series hybrid and these were that main reason why I walked away from the hybrid.

[mkoesel]

Originally Posted by drew_larson

I dont mind the hybrids but im not fully sold on the full electrics. Unless they start ramping up the hp and torque figures to a competitive level

Electric motors make full torque from zero RPM, and they are also very compact. Some of the most powerful vehicles on the market are electric.

If what you mean to say is that you want an EV to cost the same as an ICE powered vehicle with similar performance, that will happen sometime next decade. Although it is already beginning to happen with some EV models today.

Regarding the topic of the thread, this new factory won't be any less capable of producing traditional ICE vehicles than any other BMW factory. The point of the press release was really that it will help lower BMW's operational costs in the region.

[Viffermike]

I was gonna say, mkoesel ...

People: Don't turn this into (yet another) discussion about the impending death of ICE.

This is a thread about a new manufacturing plant -- in a country, I'll add, with arguably the most Western European-esque economy of the ex-Soviet Bloc countries with the possible exception of the Czech Republic. Mercedes, Audi, Suzuki, and GM already have plants in Hungary. Lots of skilled labor there.

The only disadvantage I can see is that the plant won't be near a major seaport -- and the one that it's closest to (Split, Croatia) is not ideal for Ro-Ro auto transport. For that reason, I bet it'll be primarily an EU-spec plant, much like Fiat's plant in Poland.

Smart move by BMW.

[ghaffari46]

Originally Posted by v8twinturbo

i wana be able to hear what i drive ...

Get good speakers!

[ORIGIN M.]

Originally Posted by F32Fleet

ICE is being legislated out of existence. They must adapt.

Absolutely correct... And insurance companies will be thrilled they'll be able to control and reduce future losses !

[raysspl]

Originally Posted by drew_larson

I dont mind the hybrids but im not fully sold on the full electrics. Unless they start ramping up the hp and torque figures to a competitive level

It's already competitive

[DCG]

Originally Posted by mybostonjack

The future is electric and I have no problems adapting to it.

Either the local general public and legislators are going to have to step in and step it up or the car companies are going to have to lead the way.

Change is needed! We all have to wean ourselves off petroleum, ASAP.

Tons of Teslas hear on Long Island, New York's East End. People are voting with a dollar if they can.

[DCG]

I guess more BMW plants means more BMWs on the road, to choose from and quicker turnaround to meet the global demand. I guess that's a good thing as long as the build quality remains at the highest level!

[sevenn]

Originally Posted by Viffermike

I was gonna say, mkoesel ...

People: Don't turn this into (yet another) discussion about the impending death of ICE.

This is a thread about a new manufacturing plant -- in a country, I'll add, with arguably the most Western European-esque economy of the ex-Soviet Bloc countries with the possible exception of the Czech Republic. Mercedes, Audi, Suzuki, and GM already have plants in Hungary. Lots of skilled labor there.

The only disadvantage I can see is that the plant won't be near a major seaport -- and the one that it's closest to (Split, Croatia) is not ideal for Ro-Ro auto transport. For that reason, I bet it'll be primarily an EU-spec plant, much like Fiat's plant in Poland.

Smart move by BMW.

Miskolc and Debrecen were in competition for the last moment. Miskolc is also in line with German expectations, except the international airport. Which can be found in Debrecen. This was one of the main reason why BMW chose Debrecen.

[raj24]

How was this picture taken is the real question

[drgmt]

Originally Posted by DCG

I guess more BMW plants means more BMWs on the road, to choose from and quicker turnaround to meet the global demand. I guess that's a good thing as long as the build quality remains at the highest level!

As it is the build quality is poor especially the interior and inconsistent panel gaps etc.

My M3 comp started rattling badly just before sale.

[uniqueMR]