BMW will invest $751 million for Megacity Vehicle production

BMW announced that they will invest US$751 million for the Megacity Vehicle battery-powered city car production. The money will mostly be allocated to the new carbon-fiber factory in the United States and an expansion of its Leipzig plant. In the process, the BMW Group will be creating more than 1,000 jobs.

BMW development chief Klaus Draeger is confident that sales for the Megacity will be competent because it will cost less than 60,000 euros. This vehicle will be BMW’s first venture into battery-powered cars, and will be sold under a new sub brand focusing on sustainable mobility. The Megacity vehicle is expected to be available in 2013.

BMW CEO Norbert Reithofer said: “With this vehicle, we are revolutionizing automobile manufacturing.” BMW takes tougher environmental regulations and finds efficient solutions in the development of the Megacity Vehicle. This is a part of BMW’s plan to increase their sales to 2 million vehicles by 2020.

For passenger protection, the vehicle will have a carbon-fiber safety cell. To keep the production costs low and the vehicle lighter to make way for the battery weight, carbon fiber will be extensively used in this vehicle. BMW has collaborated with SGL Carbon SE to make a $100 million factory in Washington, USA to meet the Megacity Vehicle production needs.

Source: Autonews