Debrecen4U
May 20, 2026
BMW Vice-President Hails Debrecen as Huge Success Story
Around 50,000 orders have so far been placed for the iX3 model produced at the BMW Group’s plant in Debrecen, and demand is expected to remain strong beyond 2026, Glenn Schmidt, BMW Group’s Vice-President for Global Sustainability, said at a press briefing in Budapest on Tuesday.
According to Schmidt, the model has performed far better than expected, prompting the company to introduce a second shift at the Debrecen facility in February, earlier than originally planned. This is also expected to have a positive impact on employment, although he did not provide further details.
He stressed that the success of the Debrecen plant could also have a positive effect on investment and the development of supplier networks across the Central and Eastern European region. Hungary’s manufacturing operations demonstrate that internationally competitive electric vehicles can also be produced in Europe, he added.
Schmidt recalled that the BMW iX3 produced in Debrecen as the first member of the Neue Klasse model family has already received several prestigious automotive awards, including Hungary’s Car of the Year 2026, as well as the global World Car of the Year and World Electric Vehicle of the Year titles.
The company chose Debrecen due to its proximity to European markets, its well-established supplier base, and the availability of a highly skilled workforce, the vice-president reaffirmed. He added that Hungary’s decades of automotive manufacturing experience also played an important role in the investment decision. He emphasised that the BMW Group does not support tariffs or other trade restrictions against Chinese competitors, while also underlining the importance of ensuring balanced conditions for competition. In his view, the Chinese market is characterised by exceptionally strong competition and innovation, which contributes to technological progress and maintaining global competitiveness.
Glenn Schmidt also highlighted that technological neutrality remains of fundamental importance to BMW. The company aims to meet all customer needs, and therefore offers petrol and diesel, plug-in hybrid, electric, and hydrogen-powered models alike. This technological openness and flexibility provide stability and continuity for the company amid a constantly changing market and regulatory environment, while also taking into account differences in consumer demand and local regulations across individual markets, he noted.
Referring to changes in Europe’s regulatory environment, Schmidt stressed that the automotive industry requires predictable long-term strategic direction.
One of the core principles of BMW’s strategy, he explained, is to serve major markets through local production wherever possible, while recognising that the automotive industry fundamentally operates on a global scale. More than 85 per cent of the vehicles BMW sells in China are manufactured locally. In the United States, the company established its South Carolina plant thirty years ago, which has since become BMW’s largest factory and now produces around half of the vehicles sold on the American market.
Responding to a question from the Hungarian News Agency (MTI) about expected consolidation within the automotive sector, Schmidt said that one of the industry’s defining characteristics is that the leading car manufacturer in a given region is typically a domestic producer over the long term. As examples, he pointed to Ford and General Motors in the United States. In China, where significant consolidation is expected in the near future, he believes a Chinese manufacturer will ultimately hold the largest market share. Likewise, Europe is also likely to remain led by a local manufacturer.
In his presentation at the Transport Research Arena 2026 conference, held before the press briefing, Glenn Schmidt stressed that sustainability and competitiveness are mutually reinforcing factors. He underlined that the BMW Group remains committed to achieving net zero emissions across its entire value chain by no later than 2050, in line with the goals of the Paris Agreement. Clear and comprehensive sustainability targets, he added, can provide companies with a long-term competitive advantage.
According to Schmidt, around 70 per cent of a vehicle’s value comes from suppliers. BMW works with approximately 2,700 first-tier suppliers worldwide, while tens of thousands of second- and third-tier partners are also connected to its supply chain. The company encourages its partners to adopt circular economy solutions and renewable energy sources. In his opinion, an economy based on circular principles represents the only truly sustainable long-term path for Europe, and strengthening this approach is essential to preserving the continent’s competitiveness.
During the panel discussion following his presentation, Schmidt noted that in China, the share of plug-in hybrid and fully electric vehicle sales has risen above 50 per cent without the country setting a target for full electrification or banning internal combustion engines. Instead, China developed its automotive industry through targeted industrial policy and support for domestic manufacturers and suppliers.
By contrast, in Europe currently only around one in five new vehicles is electrically powered, despite the introduction of strict regulations aimed at achieving full electrification, he pointed out.
Source and photo credit: dehir.hu
