Steyr goes electric: BMW Group launches series production of electric engines for Neue Klasse

Woodcliff Lake, NJ/Steyr (Austria) – August 1, 2025… BMW Group Plant Steyr today began series production of the e-motor for the Neue Klasse. “Today, we are laying the foundations for the future of the BMW Group,” explained Milan Nedeljković, member of the Board of Management of BMW AG responsible for Production. “As the first production site for the Gen6 electric motor, Plant Steyr is central to the Neue Klasse and the continued development of our global production network.” The electric motor for the sixth generation of BMW eDrive (Gen6) is the first fully-electric drivetrain to be produced at the Steyr location in Austria. From there, it will be shipped throughout the production network, providing the drivetrain for the Neue Klasse. “Three years ago, we announced that we would build this electric motor in Steyr. Today, we are proud to deliver it,” said Klaus von Moltke, SVP of Engine Production for BMW AG and plant director of the Steyr facility. “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.”

Technology openness: Plant Steyr as center of drivetrain expertise 

Between the project launch in 2022 and 2030, BMW is investing over a billion euros in expanding development and production expertise for e-drives at the Steyr location. This capacity expansion will ensure the plant remains the BMW Group's leading location for drivetrains. For over 40 years, the plant has developed and manufactured internal combustion engines for the BMW and MINI brands. This extensive experience and wealth of expertise in drivetrains make the engine plant the ideal facility to produce the Gen6 electric motors. The site will continue to manufacture diesel and gasoline engines in parallel. “Technology openness is our strength – it gives us the necessary flexibility to secure long-term jobs,” said von Moltke. Around 1,000 employees will work in the new electric motor assembly. Depending on global demand, half of the Steyr location’s total workforce could be employed in e-mobility by 2030. von Moltke: “Steyr will remain the heart of our drivetrain expertise – both for combustion engines and electromobility.”

Powertrain components produced in Steyr, aluminum housings from Landshut 

Rotor, stator, transmission and power converter – all core components of the innovative, highly integrated e-drive – will be manufactured at Plant Steyr. The housing for the electric motor will be cast at Plant Landshut's aluminum foundry and further processed in Steyr. The power converter will be produced in a new in-house clean-room environment, marking the Austrian engine manufacturer’s entry into the field of electrical motorering. E-drive components from Steyr will be assembled on two new lines. The overall production concept for the Gen6 e-drive follows the principle of a modular system, making it possible to produce different highly flexible electric drivetrain derivatives for the entire range of Neue Klasse models. The modular concept generates positive economies of scale and cost savings in both development and production. It also improves the scalability of production volumes. The modular approach keeps production, supply networks and procurement highly flexible.

Comprehensive improvements to electric motor 

The electric motor has undergone significant further development for Gen6: The rotor, stator and power converter have all been holistically designed for the Gen6 technology’s new 800-volt architecture, maximizing the performance capabilities and the efficiency of the drive system. Improvements in geometry and cooling, along with reduced friction, optimize the two-stage spur gearbox. Customer-friendly acoustics have also been further refined. In the e-drive's electric “brain” – the power converter – 800-volt technology and silicon carbide (SiC) semiconductor technology are now being used to boost efficiency. Fully integrated into the electric motor housing, the power converter converts direct current (DC) from the high-voltage battery into alternating current (AC) for the electric motor. 

Lower weight, costs, and energy loss lead to greater vehicle efficiency 

Overall, the intelligent use of new technologies in the e-drive and systematic further development of existing systems produce remarkable results. Comparing one of the future models of the Neue Klasse with a Gen5 xDrive model shows the improvements in the electric motor: “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”, explains Martin Kaufmann, SVP of global Powertrain Development at BMW AG., “The efficient design of the powertrain together with the high energy content of the

high-voltage battery, enable a range of up to 800 km (WLTP) in the BMW iX3, the first model of the Neue Klasse.”

BMW Group in America

BMW of North America, LLC was established 50 years ago to support the sales, marketing and distribution of BMW automobiles and motorcycles in the U.S. In 1993 BMW Group Financial Services NA, LLC was founded, and one year later BMW Manufacturing Co., LLC began assembling vehicles in South Carolina. In 2002 and 2003, BMW Group established MINI USA, and Rolls-Royce Motor Cars NA, LLC relaunching two iconic brands and rounding out its product portfolio.

Today, the BMW Group has a nationwide corporate footprint in the U.S. which consists of nearly 30 locations in 12 different states. Beyond the National Sales Company and Financial Services headquarters in Woodcliff Lake, NJ, its manufacturing plant in Spartanburg, South Carolina, and numerous other operational facilities, BMW Group in the U.S. also includes Designworks, a strategic design consultancy in Santa Monica, CA, BMW Group Technology Office USA, a technology research and development center in Silicon Valley, and BMW i Ventures, a venture capital fund, also in Silicon Valley.

BMW Group Plant Spartanburg is the largest single BMW production facility in the world, and the global center of competence for BMW Sports Activity Vehicles including the X3, X4, X5, X6, X7, and XM. The plant assembles more than 1,500 vehicles each day, and up to 450,000 annually. Since 1994, Plant Spartanburg has assembled over 7 million BMW vehicles in the U.S.

The BMW Group sales organization in the U.S. is represented through a network of 350 BMW retailers, 147 BMW motorcycle retailers, 104 MINI passenger car dealers, and 38 Rolls-Royce Motor Car dealers. The company’s activities provide and support over 120,000 jobs across the U.S. and contribute more than 43.3 billion to the U.S. economy annually.

Journalists note: Information about BMW Group and its products in the USA is available to journalists online at www.bmwusanews.com , www.miniusanews.com, and at www.press.bmwna.com

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