BMW Group underscores innovation leadership with future vision for automotive production
The BMW iFACTORY production strategy is being implemented in China and Europe

• With the BMW iFACTORY production strategy, the BMW Group is pushing forward the transformation of production network, redefining the future of automotive production
• The foundation stone has been laid for the BMW Group’s new plant in Debrecen, Hungary, which will launch series production of the Neue Klasse in 2025.
• The third vehicle plant at the Group’s production base in Shenyang – Plant Lydia – will open soon, fully implementing the BMW iFACTORY "Lean, Green, Digital" standards.

(Beijing) The BMW Group is pushing forward the transformation of its plants worldwide with the BMW iFACTORY production strategy. On June 1, the Group's new plant in Hungary held the foundation stone-laying ceremony. Plant Debrecen will launch the series production of the Neue Klasse in 2025. In China, the third vehicle plant at Shenyang production base, Plant Lydia, will open later this month. Plant Lydia will fully implement the BMW iFACTORY "Lean, Green, Digital" standards, thereby marking another milestone in the roll-out of the BMW iFACTORY production strategy.

The BMW iFACTORY is the BMW Group’s master plan for the automotive production of tomorrow. It defines the future orientation of plants and production technologies at the BMW Group and provides a global approach to transform the production network towards e-mobility. By setting new standards in manufacturing flexibility, efficiency, sustainability and digitalization, the BMW iFACTORY underlines BMW’s innovation and leadership in automotive production. The BMW iFACTORY will be implemented at all the Group’s plants worldwide, including the three vehicle plants and one powertrain plant in Shenyang.

An important aim of the BMW iFACTORY is to use even more meaningful real-time data from throughout the production process to control global manufacturing more closely and transparently achieve the fastest possible response times. This will enhance not only volume and market planning but also supply chain and inventory management. The BMW iFACTORY focuses on three key areas: LEAN, which stands for efficiency, precision and extreme flexibility, GREEN, for sustainability, resource-efficiency and circularity, and DIGITAL, for the active use of digitalization in data science, AI and virtualization.

LEAN: Based on highly flexible, efficient production

As the benchmark in vehicle manufacturing, the BMW Group production has three key strengths: maximum flexibility, excellent processes and outstanding integration capabilities, which are also the focal points of BMW iFACTORY. Flexibility remains the key competitive advantage in several respects: the company’s production structures are so flexible that a single production line can produce different drive types and vehicle models. They also set the standard in terms of rapid responsiveness and adaptability, absorbing supply bottlenecks and shortages comparatively spontaneously and reacting quickly to fluctuations in demand. And for customers, this flexibility means they can change certain elements of their vehicle configuration up to six days before the production date.

The Shenyang production base is a leading example of BMW's high flexibility in production. Plant Tiexi, which recently celebrated its 10th anniversary, has produced 12 different models in 10 years, including the BMW 1 Series, BMW 3 Series, BMW X1 and BMW X2 in production now. It’s high output and flexibility have contributed to the Shenyang production base achieving a production volume increase from 1 million to 4 million cars within 6 years. Meanwhile, Plant Dadong is already flexibly producing models with all three major drivetrains: the combustion-engine powered BMW X3, BMW X5 and BMW 5 Series, BMW 5 Series PHEV, and all-electric BMW iX3.

GREEN: Sustainability along the entire value chain

With its mission to produce “the greenest electric car”, the BMW Group sets a clear target: by 2030, it aims to reduce CO2 emissions by 80 percent in production compared to 2019. The BMW iFACTORY focuses on sustainable production by avoiding consumption, saving resources, using state-of-the-art technologies, and implementing circularity. A key element in the sustainability concept for Plant Debrecen is the complete absence of fossil fuels. The new plant will realize CO2-free vehicle production.

In China, the BMW Shenyang production base has been using 100% renewable energy for production since 2019. In addition, nearly 80% of vehicles produced in Shenyang are transported fully or partly by railway, which greatly reduces the carbon emissions generated by traditional transportations. The recently-upgraded paint shop of Plant Dadong uses 100% renewable water for production processes, and will further improve its energy efficiency in the future.

DIGITAL: From innovations to effective use cases

Customized premium vehicles, delighted customers, excellent quality and on-time delivery have always been the goal of digitalization at the BMW Group. The BMW iFACTORY is taking data consistency to a completely new level along the entire value chain and across every one of the process chains, applying digital innovations to production, and creating effective use cases.

Virtualization plays an important role in the BMW iFACTORY. The upcoming Plant Lydia is the first BMW plant fully planned and simulated in the virtual world from the very start. Its building design and layout, production line planning and equipment commissioning were all virtualized. The convergence of virtual and physical worlds shortens planning times, enables remote maintenance and facilitates real-time collaboration.

BMW is widely using Artificial Intelligence technology in production to assure premium quality in every BMW car produced. In the Powertrain Plant in Shenyang, an innovative AI visual inspection system developed by the local team is used to inspect the cylinder head quality. The system can identify minor defects on component surface with an accuracy of 99.7%. At present, about 100 AI applications are applied across the Shenyang production base.

The highly-anticipated Plant Lydia will open later this month, and it has already started production of the all-new BMW i3, BMW's first all-electric medium-sized sports sedan. Plant Lydia is clear proof of how the BMW Group is accelerating the transformation of its production network towards "electrification, digitalization and sustainability", and promoting the upgrading of the auto industry in China.