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13 August 2025

Daily Newsletter

13 August 2025

BMW Steyr starts making e-engine for Neue Klasse

BMW says the new powertrain and high-voltage battery enable a range of up to 800 km in the BMW iX3 50 xDrive, the first model of the Neue Klasse family.

David Leggett August 13 2025

The BMW Group Plant Steyr has started series production of the e-engine for the Neue Klasse range.

The electric engine for the sixth generation of BMW eDrive (Gen6) is the first fully-electric drive train 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.

“We are laying the foundations for the future of the BMW Group,” said Milan Nedeljković, member of the Board of Management of BMW AG responsible for Production.

“As the first production site for the Gen6 electric engine, Plant Steyr is central to the Neue Klasse and the continued development of our global production network.”

“Three years ago, we announced that we would build this electric engine 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.”

Between the project launch in 2022 and 2030, the BMW Group is investing over one 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, the company says.

Besides making the Gen6 electric engines, the site will continue to manufacture diesel and petrol 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 engine assembly. Depending on global demand, half of the Steyr location’s total workforce could be employed in e-mobility by 2030. von Moltke added: “Steyr will remain the heart of our drive train expertise – both for combustion engines and electromobility.”

Rotor, stator, transmission and inverter – all core components of the highly integrated e-drive – will be manufactured at Plant Steyr. The housing for the electric engine will be cast at Plant Landshut's aluminium foundry and further processed in Steyr. The inverter will be produced in a new in-house clean-room environment, marking the Austrian engine manufacturer’s entry into the field of electrical engineering.

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 drive train derivatives for the entire range of Neue Klasse models.

BMW maintains that the modular concept generates positive economies of scale and cost savings in both development and production. It also improves the scalability of production volumes and keeps production, supply networks and procurement highly flexible.

Improvements to Gen6 electric engine

BMW says the electric engine has undergone significant further development for Gen6: The rotor, stator and inverter have all been holistically designed for the Gen6 technology’s new 800-volt architecture, maximising performance capabilities and the efficiency of the drive system. In the inverter, 800-volt technology and silicon carbide (SiC) semiconductor technology are now being used to boost efficiency. Fully integrated into the electric engine housing, the inverter converts direct current from the high-voltage battery into alternating current for the electric engine.

Comparing the future BMW iX3 50 xDrive with a Gen5 xDrive model shows the following improvements in the electric engine: “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”, said Martin Kaufmann, SVP of global Powertrain Development at BMW AG.

BMW says the new 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 50 xDrive, the first model of the Neue Klasse.

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