Is BMW’s Steyr Plant the Future of EV Engine Production?
BMW Group has started full production of its sixth-generation EV engines at its long-standing Plant Steyr site in Austria, shifting the facility from combustion heritage to EV output.
This is the first time the site is manufacturing electric drives, aligning with BMW’s Neue Klasse platform and wider plans for sustainable mobility.
From combustion to electric
For more than 40 years, Plant Steyr has been at the centre of BMW’s combustion engine operations.
The facility, supplying one in two BMW and MINI vehicles worldwide, now takes on a new role as it moves into EV territory.
The transformation includes new production halls, upgraded infrastructure and redesigned production processes.
The shift starts with the introduction of BMW’s Gen6 electric engine, part of a broader EV transition under the Neue Klasse platform.
“Three years ago, we announced that we would build this electric engine in Steyr,” says Klaus von Moltke, Head of Engine Production at BMW AG and Plant Director at Steyr.
“Today, we are proud to deliver it. What we are launching here today is more than just a production ramp-up.
“It is a firm commitment to Europe, to technology and to the future.”
Production at Plant Steyr includes the full electric drive: rotors, stators, transmissions, housings and inverters.
The site also works closely with BMW’s Plant Landshut, which supplies parts like housings.
About 1,000 employees begin work on the new EV assembly line.
There is potential for nearly half the plant’s 4,900 staff to move into EV-related roles in the medium term.
Gen6 electric engines
BMW’s sixth-generation electric engine brings efficiency improvements across energy usage, cost and weight.
The company states the Gen6 engine:
Reduces energy loss by 40%
Cuts weight by 10%
Lowers production costs by 20%
Together, these changes boost total efficiency by around 20%.
The redesign supports both vehicle performance and sustainability goals across the Neue Klasse EV line.
“Today we are laying the foundations for the future of the BMW Group,” explains Milan Nedeljković, BMW AG Board Member for Production.
“As the first production site for the Gen6 electric engine, Plant Steyr is central to the Neue Klasse and the continued development of our global production network.”
The Neue Klasse, BMW’s EV architecture for future models, relies on next-generation electric powertrains and digital-first design.
In-house EV manufacturing for local impact
The move to EV manufacturing is part of a broader economic and regional development plan.
BMW states that all major elements of the Gen6 engine are manufactured in-house at Steyr.
“The new electric engine is made with innovative manufacturing processes,” says Helmut Hochsteiner, Head of Electric Engine Production in Steyr.
"Implementing them takes perfect planning, experience and expertise, which is why we scaled up component production and the manufacture of the entire drive to industrial level ourselves, here in-house.”
This internal capability helps BMW keep control over the quality and efficiency of the EV production line while developing long-term workforce skills within the region.
