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BMW Strengthens Technological Independence and Its Austrian Operations
15. October 2026BMW is investing more than EUR 100 million in process improvements and a new high-tech production facility for inverter components used in electric drivetrains at its Steyr site. The investment reduces supply chain risks while creating additional value creation in Austria.
The BMW Group plant in SteyrBMW Group plant in Steyr () is one of Austria’s most important industrial and R&D locations. Since 2022, the site has been systematically expanded into a key competence centre for electromobility within the BMW Group’s global production network. Each year, it supplies more than one million petrol and diesel engines to BMW Group vehicle plants worldwide. Today, Steyr is also producing Gen6 electric motors for the Neue Klasse platform.
Discover why BMW is advancing the future of mobility at its Austrian site in Steyrwhy BMW is advancing the future of mobility at its Austrian site in Steyr () and how the Austrian Business Agency (ABA) supports the company’s investment projects from the initial concept through to implementation.
With a new investment of more than EUR 100 million through 2029, BMW is taking the next step in the development of the Steyr site. By summer 2029, a state-of-the-art production facility for power electronics and inverter components will be established. The investment includes a new cleanroom as well as the necessary infrastructure. At the heart of the project is the inverter’s power module, a highly sophisticated component that controls energy transfer between the high-voltage battery and the electric motor and is therefore crucial to the performance and efficiency of electric drivetrains.
BMW Strengthens the European Value Chain
In the future, the Steyr plant will take over upstream supply chain activities as well as the assembly of this key component. For Austria, this decision is particularly significant. Until now, the power module has been sourced externally. By establishing in-house production, BMW is relocating an additional technologically advanced stage of the value chain to Austria. At the same time, expertise in one of the mobility industry's most important future-oriented fields is being firmly anchored in the country.
The new production line will also introduce innovative manufacturing technologies that have not previously been used within the BMW Group. These include large-area soldering and ultrasonic welding. The resulting expertise creates highly skilled jobs and new development opportunities for employees at the site.
The fact that Steyr prevailed within the Group confirms the clear focus of our industrial strategy: strengthening key technologies such as chips and semiconductors, reducing technological dependencies and bringing value creation back to Austria. Our ambition is clear: the vehicles of the future should not only be driven in Europe but also produced here.
Technological Sovereignty Enhances Competitiveness
In addition to increasing local value creation, the resilience of global supply chains plays a key role in the project. Against the backdrop of global uncertainties and the growing strategic importance of key technologies, the project demonstrates how international industrial companies can secure their supply chains while creating high-value manufacturing capabilities in Europe. The investment highlights Austria’s attractiveness as a location for high-tech production, industrial innovation and long-term industrial development.
By producing the power module in-house, we are moving even deeper into electrical engineering and can source components such as semiconductors more flexibly on global markets.
FAQs
- 01
Why is BMW investing more than EUR 100 million in the Steyr plant?
BMW Group is further expanding the Steyr site as a key competence centre for electromobility. The investment will create new production capacities for power electronics and inverter components, generating additional value creation and strengthening technological expertise in Austria.
- 02
What is the significance of the new power module for electromobility?
The power module is the core component of the inverter and a key element of BMW’s next generation of electric motors. It regulates the flow of energy between the battery and the motor and plays a decisive role in the efficiency and performance of electric drivetrains.
- 03
How does the new production facility strengthen Austria as a business location?
By manufacturing a key component in-house that was previously purchased externally, BMW is expanding the local value chain. The project will secure highly skilled jobs, build expertise and strengthen Austria’s position as a location for future industrial technologies.
- 04
What role does the new production facility play in creating resilient supply chains?
By producing the power module in Steyr, BMW is taking greater control of its supply chain. This enables more flexible sourcing of critical components such as semiconductors while reducing dependencies in a strategically important technology field.
- 05
What is the significance of the Steyr plant within the BMW Group?
The Steyr plant is BMW Group’s largest engine production facility worldwide and an important development centre for drivetrain technologies. Today, the site manufactures petrol, diesel and electric motors for BMW Group vehicles around the globe and is increasingly evolving into a centre of excellence for electromobility.