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BMW shows strong resilience in journey towards full electrification

By CAO YINGYING | China Daily | Updated: 2023-03-20 09:17
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The BMW iFACTORY strategy is accelerating the use of digital technologies like artificial intelligence at the BMW Brilliance Automotive Shenyang production base in Liaoning province. [Photo/China Daily]

To fully electrify its brand and product line, BMW is upgrading its global production system based on the BMW iFACTORY strategy, which emphasizes lean, green and digital manufacturing principles to create a new production concept in the electric era.

For example, BMW Brilliance Automotive's new Lydia site of Plant Tiexi in Shenyang, Northeast China's Liaoning province, has a high degree of flexibility and an electrification-oriented production system, capable of producing EVs exclusively.

With a total investment of 15 billion yuan ($2.2 billion), the factory features cutting-edge digital technologies such as 5G communication, virtual simulation and artificial intelligence.

BMW will follow the BMW iFACTORY production strategy to upgrade more than 30 factories worldwide.

According to the BMW Group, it is unlikely that all global markets will have the necessary infrastructure for customers to transition to pure EVs within the next decade. As such, the company is exploring hydrogen fuel cell technology as an alternative eco-friendly option for its vehicles, which could have potential in the second half of the decade.

Earlier this year, BMW unveiled a pilot series of the BMW iX5 Hydrogen, which is equipped with a high-performance fuel cell and optimized power battery. With a special drive system, the vehicle has a range of 504 kilometers under World Light-Vehicle Test Procedure.

During its annual conference, the group released its financial report for 2022, which revealed that the company had met its targets for the year and exceeded its main financial indicators from the previous year.

The BMW Group reported revenue of 142.6 billion euros in 2022, an increase of 28.2 percent year-on-year. Its global sales reached 2.4 million units in the same period, down 4.8 percent mainly because of global supply chain bottlenecks.

Sales of pure EVs soared 107.7 percent year-on-year to 216,000 units, accounting for 9 percent of its total sales.

The encouraging numbers shown in the company's annual financial statements are the tailwinds for strengthening the company on its home stretch for the launch of the NEUE KLASSE, BMW said.

"The BMW Group has shown a high degree of resilience, especially under challenging conditions. The company anticipates developments in the economic environment at an early stage and takes action accordingly," Zipse said.

"A high level of flexibility, combined with our operational performance, proved to be an effective combination for ensuring the success of the BMW Group and taking advantage of opportunities for profitable growth, even in the face of headwinds," he said.

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