Summary

  • BMW is preparing for the production of its new generation of battery-powered vehicles, called the Neue Klasse, at its plant in San Luis Potosi, Mexico.
  • The new generation of cars will debut a new EV-only platform and will be produced at new plants in Hungary and China as well.
  • The expansion of the San Luis Potosi plant includes a new 861,000 square foot building for assembling battery packs for the Neue Klasse vehicles with cells supplied by AESC and CATL.
  • BMW’s focus on quality control for the battery packs includes innovative welding techniques and a new level of quality control to ensure 99.99999% of good parts.
  • BMW chose Mexico as a manufacturing hub for the Neue Klasse due to the need for a manufacturing presence where cars are sold, as well as the plant’s focus on sustainability and innovation.

Article

BMW is gearing up for its electric future with the production of its next generation of battery-powered vehicles, known as the Neue Klasse, at its plant in San Luis Potosi, Mexico. The plant is currently producing 2 Series coupes, 3 Series sedans, and M2 coupes for the U.S. and global markets, with plans to expand to include Neue Klasse production in 2027. The new models will debut a more high-tech platform designed to keep BMW competitive in the rapidly evolving EV industry, especially in the Chinese market where competition is fierce.

To accommodate the production of the Neue Klasse vehicles, BMW is expanding its assembly and logistics areas, as well as constructing a new building for assembling battery packs. These battery packs will be powered by the latest technology, with cells supplied by AESC and CATL, promising a 20% increase in energy density and 30% faster charging speeds. The challenge lies in the complex battery pack design, where each cell must be welded perfectly to ensure maximum efficiency and minimal waste.

In order to ensure a smooth production process, BMW is investing in innovative welding techniques and quality control measures that aim for near perfection in part quality. The company is learning from past experiences, such as General Motors’ struggles with their Ultium battery packs, and is sending engineers and specialists to Hungary and Germany to gain valuable insights into the new architecture and processes. By 2027, the San Luis Potosi plant will be able to produce approximately 140,000 battery packs annually.

The decision to produce the Neue Klasse in Mexico was driven by BMW’s realization that having a manufacturing presence in the regions where cars are sold is essential, especially in light of global supply chain disruptions seen during the pandemic. The plant in San Luis Potosi offers a modern and sustainable production environment, with plans to expand its use of onsite solar energy. Despite potential challenges stemming from U.S. EV tax credits and trade policies, BMW remains focused on its investment in the plant and the future of electric vehicle production.

With preparations already underway for the production of the Neue Klasse vehicles, BMW is set to enter a new era of electric mobility. By leveraging innovative technology and processes, the company aims to overcome manufacturing challenges and deliver high-quality EVs to the global market. As the auto industry continues to shift towards electric vehicles, BMW’s investments in its Mexican plant and battery production capabilities position it well to compete in the evolving landscape of mobility.

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