FRANKFURT -- BMW will invest 1-billion-euros ($1.05 billion) in its plant in Steyr, Austria, by 2030 to allow the development and production of next-generation electric powertrains starting in 2025, the automaker said in a statement.
The sum includes an investment of about 710 million euros in production, the automaker said. The plant will build the core components for a new e-drivetrain including the rotor, stator, transmission, inverter and the housing, on two assembly lines.
BMW as well as rivals such as Mercedes-Benz and Volvo are investing heavliy in their electric drivetrains, which are crucial to preserving their brand identities in the transition to electrification.
"Bayerische Motoren Werke (Bavarian Motor Works) always stood for the best drivetrains in the market," a spokesman told Automotive News Europe earlier this year. "Our clear goal is to carry this over to the era of partially and fully electric drivetrains."
The plant has developed and built combustion engines for the BMW and Mini brands for more than 40 years.
"Years of experience and and a wealth of drivetrain expertise make BMW Group Plant Steyr the ideal location for the sustainabile mobility of the future," BMW's production chief, Milan Nedeljkovic, said in the statement.
The investment will help the site's annual capacity grow to more than 600,000 units, BMW said.