BMW pours $17 billion into Neue Klasse future
They spent how much? German luxury brand’s record investment is tipped to future-proof it for decadesThe News
BMW has spent more than a record €10 billion Euro on its critical Neue Klasse vehicles program. That’s the equivalent of $A17 billion and more than the annual budget of plenty of small countries.
The Key Details
- BMW Neue Klasse (New Class) has cost more than €10 billion over the last five years
- The first Neue Klasse vehicle, the BMW iX3 electric SUV, launched in Munich last week
- The record spend by BMW encompasses product development, a massive upgrade in technology and even construction of a new green factory in Hungary
- Neue Klasse design and technology will feature in 40 new and updated EV and ICE vehicles over the next 24 months
The Finer Details
BMW is spending a stupendous amount of money on Neue Klasse because the program’s breadth and depth is so huge.
The first Neue Klasse model, the 2026 BMW iX3 electric medium SUV, broke cover in Munich last Friday, showcasing the brand’s new styling direction, vehicle architecture and electric powertrain tech.
“For us at BMW, it's the highest investment we ever did,” BMW board member for development Dr. Joachim Post confirmed.
“It's all-over investment to bring it into the whole fleet and the technologies involved and the overall cost. It’s extraordinary. When you ask our Chief Financial Officer, he will tell you it's a horrible amount.”
The investment has trickled in over five years, since Neue Klasse commenced in 2021 and commendably – and to the CFO’s relief, no doubt - it has made a profit each of those years.
Essentially, BMW is pitching Neue Klasse as a generational technology leap that future-proofs the company for decades to come.
It is literally a tear-it-up and start again program.
“In 2021 we decided to make the Neue Klasse and now we're delivering it,” declared Post.
“Looking back, it was the right time, the right decision we made. Why? At this time, we have seen which technologies are coming in the future.
“Computing power, next level of battery technology, battery cell chemistry technology, and ADAS systems. All these technologies came up. We say we have to jump more than only the [one] generation.
“We have to integrate electronics in a way that we have a software-defined vehicle. We make a solid architecture with four superbrains, new level of ADAS, completely new interior experience with panoramic iDrive.”
While Post plays it down, Neue Klasse is also BMW’s riposte to the existential threat the Chinese auto industry poses to Western legacy brands with their combination of cutting-edge battery and software tech, and low pricing.
“It [Neue Klasse] will not fail,” Post insisted.
“We're building cars more than 100 years and we are in this business. We know how to make cars and we just believe in the strengths of our organisation with the ideas, the power of our engineers.
“Once you have driven the car and you see that's sheer driving pleasure on a completely new level, it's mind-blowing.”
The Road Ahead
More than 40 new and updated EV and ICE models will be rolled out by BMW by the end of 2027 and all of them will be impacted by Neue Klasse, to some degree.
EVs will get new-gen powertrains and attendant computing ‘superbrains’, while ICE models will pick up new styling cues and infotainment upgrades such as pillar-to-pillar panoramic vision.
The iX3 will land in Australia mid-2026 with the second Neue Klasse EV model, the i3 battery electric sedan, due here in 2027.
Related: Six BMW Neue Klasse EVs to launch before 2030
Related: 2026 BMW iX3 debuts with brand’s next-gen EV tech
Related: CES 2025: BMW Neue Klasse Panoramic iDrive previews German brand’s next-gen
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