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BMW increases investment by RMB 20 billion
Gearing up for the local production of the Neue Klasse

April 26, 2024

• Firmly committed to a future in China: RMB 20 billion of new investment
• Driving productivity through intelligent, sustainable manufacturing: advanced production system paving the way for Neue Klasse local production from 2026

(Shenyang) On April 26, BMW announced it will deepen its roots in China with further investment of RMB 20 billion in its Shenyang Production Base. The focus of the new investment will be a large-scale upgrade of the facilities and technologies of Plant Dadong, the birthplace of BMW production in China, in preparation for the local production of the Neue Klasse from 2026. The investment underscores the company's unwavering commitment to the Chinese market.

Hao Peng, Secretary of the Liaoning Provincial CPC and Chairman of Provincial People's Congress Standing Committee, Li Lecheng, Deputy Secretary of Provincial CPC and Governor of Liaoning Province, and Oliver Zipse, Chairman of the Board of Management of BMW AG, jointly witnessed the signing of the investment Memorandum of Understanding (MoU). With this new investment, the BMW Group and BMW Brilliance will leverage the local production of Neue Klasse models to deepen its cooperation with Liaoning Province and Shenyang City in areas such as industrial upgrading, technological innovation, supply chain development, and talent cultivation. The strategic cooperation will promote the high-quality development of NEV and ICV clusters in Northeast China, and boost the transformation of the manufacturing industry toward becoming smarter, greener and more efficient, enabled by China's vision of “New Quality Productive Forces”.

Hao Peng said: "The BMW Group is a world-renowned auto company with century-long history. In recent years, the BMW Group has been developing rapidly in new energy vehicles and autonomous driving, maintaining its leadership position in the industry. Over the past 20 years, the BMW Group has set deep roots in Liaoning Province, and Shenyang is now home to the company’s largest production base in the world. Liaoning economy and social development has continued to develop positively, laying a solid foundation for further deepening of cooperation with the BMW Group. Liaoning will continue to firmly support the development of BMW Brilliance, and this signing will be a new starting point to boost this cooperation to a new height, jointly building a model of Sino-German economic and trade cooperation."

Oliver Zipse said: “The BMW Group and Liaoning have built a model of mutual benefit and win-win cooperation. Liaoning and Shenyang have continued to provide strong support for BMW Group's investment and development in Liaoning, for which we are deeply grateful. The future is being built here in Shenyang. The Neue Klasse is without doubt the BMW Group’s largest-ever investment, heralding a new era of intelligent individual mobility driven by innovation and technology. In 2026, the first China-made Neue Klasse will roll off the line in Shenyang. The new 20 billion RMB investment plan we announced today again underlines the pivotal role of China in the BMW Group’s transition towards ICV. It’s a commitment that not only points to our success in China over the past three decades, but also expresses our confidence for the years ahead.”

High efficiency, high technology, high quality: redefining intelligent, sustainable manufacturing

BMW’s Shenyang Production Base is intensely focused on leveraging latest technologies and breakthrough innovations to achieve new levels of manufacturing excellence. With the new investment, Plant Dadong and the Shenyang Production Base will set new industry benchmarks for intelligent and sustainable production. In intelligent manufacturing, AI technology has been widely applied in the Shenyang Production Base, with about 100 AI applications in operation currently. For example, its Press Shop adopts an industry-first BMW self-developed AI intelligent quality inspection system, and the Paint Shop uses an AI computer vision system monitors the production process in real time, boosting efficiency and ensuring product quality. In terms of virtualization, “digital twin” technology is used to intelligently merge the virtual and real worlds, which successfully shortened the construction cycle of BMW’s Lydia Site in Shenyang by 6 months. In terms of sustainable production, green and circular concepts are integrated throughout the Shenyang Production Base. The Shenyang Production Base has been using 100% renewable electricity since 2019. Meanwhile, the use of “smart energy” systems throughout the Shenyang Production Base have improved operational efficiency and taken carbon reduction to a whole new level. The Shenyang Base also has a complete water treatment system, creating a complete closed cycle of water resources. Through cooperation with local partners, BMW also achieved an industry first closed-loop recycling of raw materials for domestically-produced HVB in electric vehicles, effectively reducing 70% of carbon emissions from resource extraction.

A step forward in manufacturing innovation, full power ahead for the China Production of the Neue Klasse

The Neue Klasse is not just a car, but the beginning of a whole new generation of all-electric BMW models. The Neue Klasse represents a major leap forward for BMW’s design, technology and production innovation capabilities. Local production of the Neue Klasse will begin from 2026; the RMB 10 billion Sixth-Generation Battery Project with an investment of 10 billion RMB is progressing on schedule, with the main building fully completed in November last year. Equipment installation is expected to be finished within the year, with the official opening set for 2026.

With the Group’s long-term commitment of being "At Home in China", the cumulative investment in BMW’s Shenyang Production Base has now reached RMB 105 billion since 2010. Now, with new investment in China and the further upgrading of its production facilities, the BMW Group is demonstrating its commitment to contribute to the economic development of Liaoning Province and Shenyang City.

Information about BMW Group products is available to consumers via the Internet at:
http://www.bmw.com.cn
http://www.minichina.com.cn

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