Europe keeps on growing.

31. July 2018
ca. 2 Minuten

There is no disputing that Europe offers a wealth of history and culture. But for many big companies, it is the continent’s geographic location that makes it so attractive, as the ideal central marketplace. Viewed as a whole, Europe is also the BMW Group’s largest production location: a location with major growth opportunities that can strengthen the global balance between production facilities in Asia, the Americas and Europe.

Creating a balance like this requires clear strategic alignment, a sustainable vision and, of course, corresponding investment. The BMW Group is therefore planning to spend around one billion euros building a new plant for BMW models in Debrecen, Hungary. 

“The decision to build a new plant underlines the BMW Group’s global growth prospects. Following major investments in China, Mexico and the US, we are now strengthening manufacturing in Europe,” stated Harald Krüger, Chairman of the Board of Management of BMW AG.

This certainly makes sense if you take a closer look at the European market. With 1.1 million vehicles delivered to customers here last year, nearly 45% of all BMW Group vehicles were sold in Europe. This figure rose by another 1.2% in the year to the end of June 2018 – making Europethe most important market [N1] for the BMW Group.

Debrecen is therefore the ideal location to expand the BMW Group production network. It combines excellent infrastructure with good logistical connections and proximity to our established supplier network. The skilled local labour force is another important advantage. With an annual capacity of up to 150,000 units, the new plant will create more than 1,000 new jobs. Over the medium and long term, additional jobs will be created on the plant grounds and throughout the region at suppliers and service providers.

Positive experiences gained in the past also contributed to the choice of Debrecen for the new site. The BMW Group has had its own representative office in Hungary since 2004 and enjoys good relationships with suppliers.

From a strategic and business perspective, the expansion of the European production network is therefore the right decision, in line with the guiding principles of BMW Group Strategy NUMBER ONE > NEXT. It also supports the vision of the BMW Group. 

“Every BMW Group automotive plant in Europe will produce electrified vehicles in the future. We will also be able to build vehicles with combustion engines and electrified drive trains on a single line at the new location in Hungary. At start of production, the plant will set new standards for flexibility, digitalisation and productivity,” according to Oliver Zipse, member of the Board of Management of BMW AG, responsible for Production.

This will be achieved using innovative automation solutions, modern assistance systems and flexible logistics applications – so that nothing can stand in the way of the BMW Group’s long-term success in Europe and the successful opening of the Debrecen plant.

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