BMW has invested about €2bn in its 3 Series production sites in Munich and Dingolfing and a new battery plant 135km north-east of Munich, underscoring its commitment to German manufacturing despite industry decline. The Munich plant, rebuilt over five years, employs 6,000 workers building the all-electric 3 Series, with production starting in August. BMW’s head of production Raymond Wittmann stated, 'We definitely see a future for Germany as a manufacturing location.' While Volkswagen and Mercedes cut capacity, BMW is decoupling from German industry decline, where up to 15,000 jobs vanish monthly.
The factory, operational since 1922 with aircraft engines and motorbikes, now uses self-driving robots and vertical lifts across three floors. BMW also spent €2bn on a Hungarian plant in Debrecen and is cutting 8,000 back-office jobs, excluding blue-collar staff. CEO Milan Nedeljković warned operating margins may take over five years to return to 8–10%, projecting 1–3% this year.
Yet BMW’s domestic production outperformed rivals: one in four German-made vehicles last year was a BMW (1.07mn units), with a 6% production increase in 2025 versus a 10% industry drop. UBS analyst Patrick Hummel noted BMW’s better plant utilisation and market share gains in Germany. Premium positioning shields BMW from Chinese rivals at home, allowing higher margins to absorb labour costs.
IG Metall Bavaria boss Horst Ott praised BMW’s long-term culture, contrasting it with short-term quarterly thinking.
Source: Financial Times Companies · Summarized by HeadlinesBriefing