Luxury automaker announces a new plant in Debrecen to bolster European production
BMW has announced a new plant in Hungary, able to produce around 150,000 cars per year, employ around 1000 people, and cost roughly €1 billion ($1.6 billion) to construct.
It hasn't been announced when the plant will start operation, or which models it will produce. BMW says it is adding another European factory to its roster because sales on the continent accounted for almost 45 per cent of its volume in 2017.
Additionally it was lured by the site's good infrastructure, logistics connections, and physical proximity to an establisher supplier base. No doubt the country's lower wage demands, compared to existing European sites, also helped.
BMW says the new factory will be able to produce models with traditional internal combustion engines on the same line as electrified models. The company says its existing European factories will also be upgraded to have this level of flexibility in the future.
The company operates eight factories in Germany, one in Austria, and three in the UK. Vehicles are also produced under contract by Magna Steyr in Austria, and VDL Nedcar in the Netherlands.
Key factories in other regions include the export-oriented factories in Spartanburg, South Carolina, and Rosslyn, South Africa.
In order to skirt around import tariffs or gain a local foothold, BMW also has "partner plants" in Kaliningrad, Russia; Cairo, Egypt; Jakarta, Indonesia; and Kulim, Malaysia making vehicles from complete knock down (CKD) kits.
For those interested, here are all the BMW factories listed on the company's corporate site, and the vehicles they manufacture:
Germany and Austria
- Berlin, Germany: Motorcycles
- Eisenach, Germany: Dies and body panels for Rolls-Royce
- Leipzig, Germany: BMW 1 Series, 2 Series, i3, i8
- Munich, Germany: BMW 3 Series, 4 Series, and engines
- Landshut, Germany: Lightweight components and engines
- Wackersdorf, Germany: Components, logistics hub for overseas plants, carbon-fibre components for i models
- Regensburg, Germany: BMW 1 Series, 3 Series, 4 Series, X1, and X2
- Dingolfing, Germany: BMW 3 Series GT, 4 Series Gran Coupe, 5 Series, 6 Series, 7 Series, 8 Series
- Steyr, Austria: Three-, four- and six-cylinder engines, diesel engine development
- Oxford, England: Mini hatches, Clubman
- Swindon, England: Outer body panels for Mini
- Hams Hall, England: Three- and four-cylinder petrol engines
- Spartanburg, USA: BMW X3, X4, X5, X6
- San Luis Potosi, Mexico: (coming online in 2019)
- Araquari, Brazil: BMW 1 Series, 3 Series, and various X models
- Two plants in Shenyang, China: BMW 1 Series sedan, 2 Series Tourer, 3 Series, 3 Series LWB, 5 Series LWB, X1, X3
- Rayong, Thailand: BMW 1 Series, 3 Series, 5 Series, 7 Series, X1, X3, X4, X5; Mini Countryman; BMW motorcycles
- Chennai, India: BMW 1 Series, 3 Series, 5 Series, 7 Series, and various X models; Mini Countryman
- Rosslyn, South Africa: BMW 3 Series