BMW Group will build a new factory close to the town of Debrecen in Hungary, the company’s first new facility in Europe in nearly two decades.
The German automaker’s new production facility will come at an investment of around 1 billion euros ($1.17 billion), offer an annual capacity of up to 150,000 cars and create over 1,000 new jobs.
The new Debrecen factory will be BMW’s first new factory in Europe since 2000, when BMW decided to build a new site at Leipzig, Germany. BMW didn’t detail which models are planned to be produced at the new Hungarian facility.
BMW also said that the new factory will produce both conventional and electrified models on a single production line.
“In the future, every BMW Group plant in Europe will be equipped to produce electrified as well as conventional vehicles,” said Oliver Zipse, BMW AG Board Member for Production. “Our new plant in Hungary will also be able to manufacture both combustion and electrified BMW models – all on a single production line. It will bring greater capacity to our worldwide production network. When production commences, the plant will set new standards in flexibility, digitalisation and productivity.”
Mercedes, Audi and Suzuki already have car factories in Hungary while Opel is running an engine production facility there too. BMW’s new Hungarian factory will add to the company’s 31 facilities worldwide.
BMW will begin construction of the new Debrecen factory in the second half of 2019.
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