Summary
- BMW is preparing to produce the next generation of battery-powered vehicles, named the "Neue Klasse," at a plant in Mexico.
- The plant is being expanded to include battery-pack production, with plans to build an 861,000-square-foot building for assembling battery packs.
- BMW’s new battery design for the Neue Klasse introduces complexity and requires high levels of precision during production.
- The company is investing in innovative welding techniques and quality control to ensure that battery packs are produced flawlessly.
- BMW decided to manufacture the Neue Klasse in Mexico due to the need for a manufacturing presence in regions where cars are sold and the potential changes in U.S. EV policies.
Article
BMW is gearing up for its electric future with the production of their next-generation battery-powered vehicles, known as the “Neue Klasse,” at their plant in San Luis Potosi, Mexico. With production scheduled to begin in 2027, the plant is already undergoing preparations to expand and integrate battery-pack production to support the new models. The facility’s president and CEO, Harald Gottsche, highlighted the level of innovation and complexity involved in preparing for the Gen6 battery production and emphasized the intensive preparation efforts currently underway.
The San Luis Potosi plant currently produces various BMW models for the U.S. and global markets, including plug-in hybrid and combustion models. The production of Neue Klasse vehicles will begin at a new plant in Hungary in late 2025, followed by production in Mexico. The expansion plans at the San Luis Potosi plant include increasing the assembly and logistics area, expanding the body shop, and constructing a new building dedicated to assembling battery packs for the Neue Klasse vehicles.
The upcoming Neue Klasse vehicles will feature a new EV-only platform aimed at keeping BMW competitive in the rapidly evolving EV industry. The unique battery pack design of the Neue Klasse vehicles presents manufacturing challenges, as each pack will consist of hundreds of battery cells assembled directly into a large pack. To ensure quality and precision, BMW is investing in innovative welding techniques and quality control measures, aiming for near-perfect production quality to avoid costly scrap and issues down the line.
To guarantee a smooth production launch in 2027, BMW has deployed a team of engineers and specialists to Hungary to assist with the launch of Neue Klasse production. Another group is stationed in Germany at BMW’s battery research and development facility to absorb knowledge about the new architecture and processes. By the second year of production, the San Luis Potosi battery plant will have the capacity to produce approximately 140,000 battery packs annually, in addition to vehicle production on the existing assembly line.
BMW’s decision to produce the Neue Klasse vehicles in Mexico is driven by the need to have a manufacturing presence in regions where cars are sold, as highlighted by the supply chain disruptions during the pandemic. The San Luis Potosi plant offers a modern facility with sustainability initiatives, utilizing solar energy for 13% of its power and planning to double that in the future. While considerations for U.S. EV tax credits may have played a role in the decision, BMW is also mindful of potential policy changes that could impact investments and production planning.
Looking ahead, BMW is navigating uncertainty surrounding EV policies in the U.S., as potential shifts in government administration could impact the industry. With significant investments in expanding the Mexican plant for EV production, BMW must carefully assess short-term policies that could influence their investments. Despite challenges and complexities, BMW is focused on preparing for a successful launch of the Neue Klasse vehicles and ensuring the plant’s readiness for the future of electric mobility.
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