Bavarian village to decide future of key BMW factory

Bavarian village to decide future of key BMW factory

BMW has already built battery factories to supply its plants in Hungary, the United States, Mexico and China
BMW has already built battery factories to supply its plants in Hungary, the United States, Mexico and China. Photo: Christof STACHE / AFP/File
Source: AFP

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

A sleepy Bavarian village could decide the future of BMW's drive towards electromobility as it goes to the polls on Sunday over the German automobile giant's plans to build a huge battery factory.

The residents of Strasskirchen, around 90 minutes' drive from Munich with a population of around 2,700, are being called upon to vote in a referendum on the construction of the factory.

With German industry in a slump amid slowing global demand and high energy costs, the project is billed as a vote of confidence in the future of products "made in Germany".

It also comes at a crucial time for BMW as the car industry transitions from combustion-engine vehicles to electric-powered ones.

But in Strasskirchen, some residents fear the factory will transform their leafy village on the edge of the Bavarian forest into an industrial zone with roaring trucks.

Read also

UK's colossal HS2 project in danger of going off the rails

"More than 100 hectares of prime arable land would be destroyed forever," a mistake "in view of climate change", said Thomas Spoetzl, 44, a spokesman for local residents who are opposed to the plans.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Martin Goetz, a 45-year-old native of Strasskirchen and spokesman for the other side, disagrees.

High-voltage batteries

The factory would be "a huge opportunity for the region to invest in sustainable technologies and jobs for the future", he said.

The two camps have been at loggerheads for months.

BMW wants to invest "several hundred million euros" in the plant, which will be "at the heart of the development of electric vehicles in Germany", according to Alexander Kiy, who is in charge of the project.

If Strasskirchen votes against the plant, it would be a huge blow to BMW's planned range of electric vehicles, scheduled to hit the market from 2025
If Strasskirchen votes against the plant, it would be a huge blow to BMW's planned range of electric vehicles, scheduled to hit the market from 2025. Photo: Tobias SCHWARZ / AFP/File
Source: AFP

The factory would employ more than 3,200 people and churn out 600,000 high-voltage batteries a year to supply electric cars made at BMW's plants in Regensburg, Munich and Dingolfing, the company's largest European site.

Read also

As electric shift stalls, Volkswagen weighs up savings

If Strasskirchen votes against the plant, it would be a huge blow to BMW's planned range of electric vehicles, scheduled to hit the market from 2025.

Because batteries are large and heavy, it makes sense for them to be produced as close as possible to vehicle assembly lines.

For this reason, BMW has already built battery factories to supply its plants in Hungary, the United States, Mexico and China.

"For Bavaria, and for Germany in general, it must still be possible to create a major industrial site of this type," said Armin Soller, mayor of the nearby village of Irlbach.

But as things stand at the moment, "there is a clear reluctance to create industrial sites in Germany", said Milan Nedeljkovic, a board member at BMW in charge of production.

'Germany pact'

Germany "needs a commitment to economic growth, especially at a time of transformation" in terms of energy and digital technology, he said.

Read also

EU seeks to put brakes on China without hurting ties

Europe's biggest economy has drawn several major investments in recent months as it seeks to bring home production of vital supplies, such semiconductors, in a bid to cut reliance on China.

In a drive to move faster, Chancellor Olaf Scholz recently also called on the country's regions and municipalities to support a "Germany pact" to make the country more agile, dynamic and less bureaucratic.

Because batteries are large and heavy, it makes sense for them to be produced as close as possible to vehicle assembly lines
Because batteries are large and heavy, it makes sense for them to be produced as close as possible to vehicle assembly lines. Photo: Ronny Hartmann / AFP/File
Source: AFP

But the business community remains unconvinced.

"We need a global concept that will ensure we remain competitive and maintain our locations," Arno Antlitz, Volkswagen's chief financial officer, told reporters in Frankfurt on Monday.

Just days ahead of the referendum, the mayor of Strasskirchen, Christian Hirtreiter, voiced confidence that the mood was "clearly in favour of BMW".

A victory for the car giant would be against the tide of companies leaving the region.

In July, for example, a paper mill on the nearby Plattling industrial estate with 500 employees announced that it was shutting down -- due to high energy costs.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.