BMW reveals their new ‘iFactory’ strategy (2024)

With a new plant in Debrecen, Hungary, where the all-electric New Class will roll off the production line from 2025, BMW wants to build the world’s first car plant that completely dispenses with the use of fossil fuels in its production processes. This is only one component of the new ‘iFactory’ production strategy.

The production strategy, which BMW also calls “the master plan for the production of the future”, will first be applied in its entirety in Debrecen with the New Class, but is to be implemented at all BMW plants in the future. “The BMW iFACTORY is not a one-off showpiece but an approach we will implement at all our plants in the future – from our 100-year-old home plant in Munich to our forthcoming plant in Debrecen, Hungary,” says the BMW AG Board Member for Production, Milan Nedeljković.

The new production strategy is justified, among other things, by the transformation towards electromobility. “Automotive manufacturing of the future requires a new, holistic way of thinking,” says Nedeljković. As a strategic goal, BMW has adopted the slogan “Lean. Green. Digital.” BMW states that they chose “Lean” because means efficient, precise and highly flexible production, which is the basis for the strategy.

As before, the Munich-based company particularly emphasised flexibility. In Debrecen, the strategy is indeed applied to the production of vehicles based on the electric vehicle platform. But since BMW has not yet set an end date for the combustion engine, there will be mixed production of different drive types in other plants. “Flexibility remains the key competitive advantage of BMW Group production, now and in the future,” the statement said. “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.”

Under the “Green” keyword, BMW wants to avoid consumption, conserve resources and use state-of-the-art technologies to make production more sustainable and greener as well. “Environmental, economic and social responsibility are inseparable, and we strive to achieve all three not only in the product itself but along the entire value chain,” says the Board Member for Production. “By 2030 we aim to reduce CO2 emissions from production by 80 per cent compared to 2019.”

For Debrecen, this means that a “significant proportion” of the electricity required is to be produced directly on the factory premises, while the rest is to be sourced entirely from renewable energy sources – with the latter to come “predominantly” from regional sources. “Our contribution to the energy transition makes not only environmental but also business sense because our approach ensures stable prices and secure supplies,” says Nedeljković.

Other measures: The waste heat from cooling flows into a circuit and can then heat rooms and warm water. In addition, production material and other resources are to be reused whenever possible – for example metal chips from production.

The final buzzword “digital” is also clear: all relevant product, process, quality and cost data between development, planning and production processes are networked. In addition, all production sites are completely recorded by 3D scan to create a digital image – according to BMW, this saves time and effort in production planning. Once the digital twin is in place, there are further advantages – especially when it comes to cooperation in the production network on a global scale.

Of course, all this also has consequences for the employees: BMW says it is investing massively in the restructuring of competencies in the areas of quality, logistics, maintenance, E/E, e-mobility and digital planning. Accordingly, more than 50,000 BMW Group employees have already qualified themselves for use in electromobility.

bmwgroup.com

BMW reveals their new ‘iFactory’ strategy (2024)

FAQs

What strategy does BMW use? ›

BMW's marketing strategy is centred around their strong dedication to brand positioning. BMW is more than just a company that makes cars. It represents luxury, exceptional craftsmanship, and the pure joy of driving. The brand's tagline, "The Ultimate Driving Machine," is something that has really stuck with consumers.

What is the BMW factory strategy? ›

The BMW Group is focusing on three areas: LEAN. GREEN. DIGITAL. These sum up the strategic target image of a global production network that – in line with the challenges of the future – is integrative and as scalable as can be.

What is BMW number one next strategy? ›

Purpose, Strategy and Values

The company's strategy is based on BMW AG Strategy called “Strategy Number One > Next”. As part of “Strategy Number One”, the company will actively shape and define the transformation to a technology company for premium mobility and services.

What is the BMW sustainability strategy? ›

To achieve a further reduction in CO2 emissions, the focus is on the utilisation phase of vehicles, which account for 70 percent of the BMW Group's CO2 footprint. By 2030, the CO2 emissions per vehicle and kilometre driven will be at least halved from 2019 levels.

Who is BMWs main rival? ›

BMW Group competitors include Porsche, Audi, Mercedes-Benz USA, Lexus and Fiat Chrysler Automobiles (FCA). BMW Group ranks 1st in CEO Score on Comparably vs its competitors.

What is BMW focused differentiation strategy? ›

In relation to The BMW Group, it applies the focus differentiation strategy. The BMW Group is highly focused on offering its products by focusing the needs of the Premium Customer Segment. At the same time, it has differentiated its products with specific customizations of that customer segment.

What has made BMW successful? ›

It started with aircraft engines, followed by motorcycles and finally automobiles. For over 100 years, BMW has been steadily making its mark on history. Outstanding developments, impressive technology and passionate commitment have transformed BMW into a brand that is at home throughout the world.

What is an example of a BMW innovation? ›

AUTOMATED DRIVING.

New features and technologies are currently being developed for the five levels of autonomous driving, with levels 1 to 3 already available in BMW models. Supported by AI and machine learning, we continue to work on new technologies that will expand and advance autonomous driving.

What is BMW slogan? ›

Why is the BMW slogan “Sheer driving pleasure”? What is the logic behind the BMW model designations? You'll find answers to these questions and everything about BMW here.

What is the most successful BMW model? ›

There was only ever going to be one winner. Whether it is the saloon or touring variants, the 3 Series is one of the most popular cars on the road today.

What is the main future challenge BMW will face? ›

Shifting Consumer Preferences:

Consumer preferences in the automotive industry are changing rapidly, with a growing demand for electric and hybrid vehicles. BMW has made significant investments in electric mobility, but adapting to these changing preferences can be challenging and costly.

What are the new BMW plans? ›

New BMW Models coming in 2024
  • New BMW M3 and M3 Touring. The BMW M3 is getting a minor update this year, but don't expect any major changes. ...
  • New BMW 4 Series and M4. ...
  • New BMW i4. ...
  • New BMW M2 CS. ...
  • New BMW 1 Series and M135i. ...
  • New BMW 3.0 CSL. ...
  • Updated BMW 2 Series Gran Coupe. ...
  • New BMW Vision Neue Klasse.
Jan 19, 2024

Does BMW use global strategy? ›

Abstract. This research explores BMWs international marketing strategies, illuminating the companys dynamic approach to global expansion and local market adaptation. Renowned for its luxurious and high-performance vehicles, BMW has successfully established a prestigious brand image worldwide.

What are the pillars of BMW? ›

OUR COMPREHENSIVE THREE-PILLAR APPROACH.

The declared target of the BMW Group is to cover all three dimensions of sustainability: ecological, social and economic over the entire value-added chain.

What are the core values of BMW? ›

Our core values.
  • Openness. We are excited by change and open to new opportunities. ...
  • Transparency. We do not embellish, but point out contradictions constructively. ...
  • Responsibility. We take consistent decisions and commit to them personally. ...
  • Trust. We trust and rely on each other. ...
  • Appreciation.

What is the BMW omnichannel strategy? ›

BMW is one of the world's best-known car brands. Its omnichannel strategy allows customers to configure their ideal car on the phone using a shared screen, gives them a live tour of the cars they have in stock, and has physical showrooms. BMW offers engaging experiences for its customers across multiple touchpoints.

What is the global marketing strategy of BMW? ›

The firm's global marketing strategy represents leadership through innovation. Originally an aircraft engine manufacturer, BMW incessantly sought an innovative spirit to satisfy the premium market's demands.

What is the hedging strategy of BMW? ›

First, BMW used a natural hedging strategy to spend money without converting it away from the foreign currencies that it gained through sales.

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