BMW invests over one billion euros in Austrian electric engine production
Gen6 motors deliver 40% efficiency gains over previous generation
Plant Steyr employs 1,000 workers in new electric assembly operation
BMW Group’s Plant Steyr in Austria has commenced series production of Gen6 electric engines for the upcoming Neue Klasse vehicle range, marking the facility’s first foray into electric drivetrain manufacturing after more than four decades of combustion engine production.
“Today, we are laying the foundations for the future of the BMW Group,” said Milan Nedeljković, BMW AG Board of Management member responsible for Production. The Austrian facility will serve as the primary production site for the sixth-generation BMW eDrive technology, supplying electric engines throughout BMW’s global manufacturing network.
The Munich-based automaker is investing over $1.5 billion CAD (one billion euros) between 2022 and 2030 to expand development and production capabilities at the Steyr location. Plant director Klaus von Moltke emphasized the significance of the milestone, stating: “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.”
Efficiency Gains Drive Technical Advancement

The Gen6 electric engine represents substantial improvements over previous generations, featuring an 800-volt architecture with silicon carbide semiconductor technology. Martin Kaufmann, senior vice-president of global Powertrain Development at BMW AG, detailed the performance enhancements: “Energy loss is reduced by 40 percent, costs by 20 percent and weight by 10 percent. All this makes a significant contribution to the approximately 20-percent increase in overall vehicle efficiency.”
Core components, including the rotor, stator, transmission and inverter, will be manufactured at Plant Steyr, while aluminum housings will be cast at BMW’s Landshut facility. The inverter production requires a new in-house clean-room environment, representing the Austrian manufacturer’s entry into electrical engineering.
Workforce Transformation and Production Flexibility
Approximately 1,000 employees will work in the new electric engine assembly operation. Depending on global demand, half of Steyr’s total workforce could be employed in electric mobility by 2030. The facility will continue producing diesel and petrol engines alongside electric units, reflecting BMW’s technology-neutral approach.
“Technology openness is our strength – it gives us the necessary flexibility to secure long-term jobs,” von Moltke explained. The modular production concept enables manufacturing of various electric drivetrain derivatives for the entire Neue Klasse model range while generating economies of scale.
The first vehicle to receive the Gen6 electric engine will be the BMW iX3 50 xDrive, featuring a range of up to 800 kilometres under WLTP testing conditions. The estimated Canadian range is approximately 680-720 kilometres based on the WLTP rating, though official NRCan figures are not yet available. The combination of efficient drivetrain design and high-energy battery technology enables the extended range capability for the inaugural Neue Klasse model.





