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BMW to Convert Historic Munich Plant to All-Electric Production by 2027

The automaker is investing €650 million to transform its oldest facility into a high-automation hub for the Neue Klasse i3.

TechNewsReel Newsroom · August 6, 2026

BMW is transforming its oldest production facility in Munich into an all-electric hub, marking a definitive end to internal combustion engine production at the site. The transition will see the plant shift exclusively to battery electric vehicle (BEV) production by the end of 2027.

As part of this overhaul, the facility will begin series production of the Neue Klasse i3 in August 2026. To support this shift, BMW is investing approximately €650 million into the site's infrastructure. A centerpiece of this investment is a new body shop featuring roughly 800 industrial robots, achieving an automation rate of about 98%. The supply chain for these new vehicles will be integrated across the region: sixth-generation electric motors are being produced at the BMW plant in Steyr, Austria, while batteries will be supplied by a facility in Irlbach-Straßkirchen.

A Century of Industrial Evolution

Opened in 1922, the Munich plant has served as a cornerstone of BMW’s manufacturing legacy, most notably as the home of the 3 Series. The move to eliminate internal combustion engines at this specific site is a symbolic pivot for the company, moving away from the very engines that defined the brand's identity for decades. Despite the scale of the reconstruction, BMW is managing the upgrade without halting current operations, maintaining a production capacity of up to 1,000 cars per day. The plant has already established a footprint in the transition, having produced three million electrified vehicles to date, with the 3-millionth unit being a BMW 330e Touring.

Implications for the Automotive Industry

This transition serves as a critical case study in the technical and financial challenges of the EV era. Retrofitting a century-old industrial site for a modern, high-automation electric architecture requires significant capital and precise logistical planning. By successfully converting its most historic plant, BMW is creating a blueprint for other legacy automakers struggling to migrate aging infrastructure toward sustainable manufacturing without disrupting existing revenue streams.

The Road Ahead

While the core production timeline is set, the full integration of the supply chain continues to evolve. The company has confirmed that the Irlbach-Straßkirchen facility will supply the necessary batteries for the Neue Klasse. The industry will be monitoring whether this level of automation and investment can significantly reduce the cost and complexity of BEV production at scale as the August 2026 i3 launch approaches.

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