60 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Overview of the BMW Group PRODUCTION NETWORK 1 » The BMW Group has a highly flexible production network. Con- sequently, the BMW Group is capable of manufacturing vehicles with both all-electric and plug-in hybrid drive systems as well as conventional combustion engines on one single line, making it far easier to tailor the product range to suit a wide variety of cus- tomer wishes and needs. The production system is based on the strategic vision of the BMW iFACTORY, with a keen focus on sustainability, electrifica- tion, digitalisation and profitability. The BMW iFACTORY utilises innovative technologies that facilitate flexible, efficient production with the aim of minimising the use of resources, and uses digital solutions in the fields of data science, AI, virtual planning and de- velopment to this end. « Component production for electrified vehicles » The Competence Centre at the BMW Group’s Dingolfing plant plays a central role in the manufacture of the current fifth-gener- ation electrified drivetrains. as battery modules, high-voltage batteries and electric motors are all produced at the site. The Group produces fifth-generation high-voltage batteries at four other sites worldwide. At the same time, we are preparing the network to produce next- generation electrified drivetrains. The sixth-generation electric motors will come from the engine manufacturing plant in Steyr, Austria, and will expand the local production of diesel and petrol engines. In line with the “local for local” principle, the BMW Group’s high- voltage battery assembly facilities worldwide are set up in or close to the Group’s vehicle plants. ↗ Expanding resilient supply chain. Five assembly facilities are currently being developed for the next generation of the high-voltage battery on three continents. These are located in Irlbach-Straßkirchen (Germany), Debrecen (Hungary), Woodruff near Spartanburg (USA), San Luis Potosí (Mexico) and Shenyang (China). The new Cell Manufacturing Competence Centre (CMCC) in Pars- dorf near Munich plays a key role for the BMW Group. In a pilot, it enabled the BMW Group to accurately replicate the value- added processes involved in manufacturing battery cells. The BMW Group will take the findings of this pilot scheme and apply them in close collaboration with its mass production partners for battery cells at a later stage. The strategy enables the BMW Group to set new standards regarding the quality, perfor- mance, cost and ecological sustainability of battery cells. « Electromobility in the production network » Electromobility has been growing in importance for the BMW Group for many years. Production of the BMW i5 Touring2 (Dingolfing) and the electric MINI Countryman2 (Leipzig) started in German plants in the reporting period. Internationally, produc- tion started on two electric vehicles, the MINI Aceman2 and the MINI Cooper in Zhangjiagang at the Spotlight plant, a plant man- aged jointly with Great Wall Motors in China. The Group therefore produces automobiles and motorcycles with electrified drivetrains worldwide at 17 ↗ Locations and at two partner plants. In 2024, all-electric automobiles were produced in Dingolfing, Munich, Regensburg, Leipzig, Goodwood (UK), Oxford (UK), Chennai (India), Shenyang (China) and Zhangjiagang (China). Moreover, all-electric motorcycles are manufactured both in Ber- lin and at our partner plant in Hosur (India). From 2025, the next vehicle generation will feature a vehicle ar- chitecture geared to suit all-electric drivetrains. The vehicle is due to be manufactured initially at the new Debrecen plant in Hun- gary and then in Munich starting in 2026. We aim to gradually transfer the new vehicle architecture to the global production net- work over the next few years. The BMW Group plans to produce all-electric vehicles at its plant in Spartanburg (USA), And at least six all-electric X models are scheduled to be manufactured there by 2030. « 1 This chapter contains disclosures in line with ESRS 2 SBM-1.42a)-c). 2 ↗ Consumption and Carbon Disclosures.