Future-ready: BMW’s digital transformation of its Munich plant and beyond

BMW’s Munich plant might be built on a historic foundation, but it’s being driven by cutting-edge technology. As the auto industry undergoes a rapid shift toward electrification, automation, with a greater need for flexibility, BMW is reshaping its production operations from the ground up. The transformation centres on data, digital twins, artificial intelligence, and the integration of production with product development.

”Everything we are producing here in Munich has already been planned virtually” – Peter Weber, BMW

Central to BMW’s transition is the company’s iFactory concept, which uses complete virtual planning to optimise production lines before any physical changes occur. This is a blueprint for flexible, digitised, and efficient production. “Everything we are producing here in Munich has already been planned virtually,” says Munich plant director Peter Weber. “You can really have a run-through and improve it wherever necessary.”

Digitisation and AI: Real-time adjustments at scale
The Munich facility is setting the benchmark for digital innovation across BMW’s production network. It’s not just about going digital – it’s about doing it in a way that increases speed, precision, and efficiency.

Take welding, for instance. In past generations of BMWs, the process of attaching studs in vehicle bodies involved manual adjustment, requiring costly production halts. Now, Artificial Intelligence (AI) is stepping in to change the game. “In the future, we are going to use new measuring technology… and by such measuring, we will be able to record all of the data for an automatic process regulation,” says Weber. “The AI rewrites the robot program, sends it to the robot during production, and the robot automatically welds at the corrected positions in the next cycle.”

This loop – real-time data collection, cloud processing, AI correction, and execution on the line – minimises stoppage, improves quality, and increases efficiency.

Digital twins in assembly and strategy
Digital twin technology is another key enabler in BMW’s transformation. All plants in the BMW network have been scanned to create current digital models, allowing the company to simulate production system updates before they happen.

“We have a digital twin of the current status,” Weber explains. “But also, a virtual structure that helps us decide in which structural steps we will turn the current into the future condition.”

This virtual-first mindset has already transformed how BMW handles equipment upgrades. In the past, making changes to welding robots or structural components meant halting production – an expensive and disruptive process. Now, AI-driven measuring systems record live data, feed it into the cloud, and automatically update robot programming in real time.

“The major question is how can we generate added value by using the digital twin?” – Peter Weber, BMW

These innovations are not just confined to Munich. BMW’s global production network is closely connected through “centres of competence,” where best practices are shared across sites in Mexico, China, Debrecen, and beyond.

“Recently, we had a workshop with our colleagues from these sites,” Weber notes. “We brought together paintshop experts to identify which best practices could be applied across all locations.”

The digital twin’s role isn’t static, either. It’s regularly updated based on decision points in the production lifecycle. “The major question is how can we generate added value by using the digital twin,” Weber says. “The added value is always related to decisions to be taken. So, the decision-making process is driving the update.”

This principle ensures the digital twin delivers real value rather than becoming a resource drain. When a milestone or change in production strategy occurs, the twin is refreshed and used to guide early-stage decisions. With the support of AI, these decisions can be made faster and more accurately.

“In the past, you had to wait for real-life feedback,” Weber explains. “Now, with the digital twin and AI, you can take decisions much earlier.”

AI supporting decision-making
AI is increasingly integrated into decision-making at BMW – not only for automated adjustments but also for early-stage planning. That said, the company is cautious with AI deployment. Accuracy and training are essential. “You need weeks to train the system to differentiate between correct or incorrect feedback,” notes Weber, referencing a camera-based AI system used to verify whether the right part was installed in the right car.

It’s not just about speed. It’s about building a system smart enough to reduce errors without compromising production flow.

Differentiating product and production development
One of the most sophisticated aspects of BMW’s digital strategy is how it separates, but also integrates, product creation and production system development.

BMW’s upcoming Neue Klasse vehicles, due to launch mid-decade, are central to this. While the product development targets new customer experiences and electric-first design, production planning is focused on modularity and adaptability.

Each department – engineering, purchasing, and production – sets its own “target picture” for Neue Klasse. These goals are then brought together in interdisciplinary workshops where teams align on shared solutions.

“In the past, a step-by-step approach just postponed the problem-solving process,” Weber notes. “Now, from the very early phase, departments work together intensively to ensure we find the best solution for the company, the car, and all parties involved.”

Transitioning Munich to EV-only production
BMW’s push toward full electrification includes the complete transformation of the Munich plant into an EV-only site within two to three years. But the strategy isn’t just about swapping internal combustion engine (ICE) lines for battery-electric ones – it’s about future-proofing the plant with minimal initial investment. Rather than overhauling everything at once, BMW is focusing on smart, scalable updates that maintain modularity.

“When we design a new production system, the major question is: how can we reduce the initial investment without blocking future flexibility?” Weber says. The answer lies in planning for modularity from day one.

One successful example of this approach is the integration of the BMW i4. When designing its bodyshop, the planning team anticipated future volume increases and new production requirements. Rather than building redundant systems or investing heavily upfront, they ensured that enough space and adaptability were built into each production cell.

“We already knew when we’d need additional robots or equipment. We shaped the production cell accordingly – without spending money upfront,” says Weber. “It’s not about over-investing. It’s about keeping the space and planning intelligently.”

Futureproofing through flexibility
Flexibility is not a buzzword at BMW – it’s a guiding principle. The Munich plant’s production system is being restructured to integrate new vehicle derivatives with minimal disruption and zero unnecessary cost.

This mindset is part of a broader company-wide approach. “The major success factor,” Weber emphasises, “is to really motivate the planning department to think about all different kinds of flexibility. A highly skilled and experienced planner knows exactly where flexibility is needed – whether in terms of volume or integrating a new derivative.”

This proactive, modular philosophy is also embedded in the Neue Klasse platform itself. It’s not just about one car – it’s about a structure that supports multiple generations of electric vehicles with different requirements.

These discussions start early. From the moment a project is initiated, teams from engineering, production, and purchasing are brought together to define their respective goals. This ensures that the final solution doesn’t favour one department at the expense of another – and avoids costly rework later in the process.

This early alignment is particularly important when planning around the Neue Klasse, BMW’s next-generation EV architecture. The platform is designed to support multiple models and powertrain configurations, making it essential for the production system to be just as adaptable.

“We’re not just reacting to market shifts – we’re preparing for them…” – Peter Weber, BMW

A template for the industry
BMW’s Munich plant is quickly becoming a case study in future-proofed production. Through digitalisation, flexible planning, and tight cross-functional collaboration, the automaker is reshaping its manufacturing footprint without overextending resources.

Weber is clear about the challenges, but confident in the method. “We’re not just reacting to market shifts – we’re preparing for them,” he says. “By building in flexibility from the start, we reduce risk and create space to adapt.”

And this digital transformation is not a standalone initiative – it’s a company-wide shift that combines AI, digital twins, automation, and human expertise. What sets BMW apart isn’t just the technology – it’s how it’s applied.

As Weber puts it, “It’s all about creating added value – making better decisions, earlier, and with less disruption.”