BMW has scrapped plans to end production of its branded V8 and V12 petrol engines, which will continue to be offered in its high-end performance and luxury models alongside a range of new electric vehicles (EVs) as part of its ‘New Class’ electrification strategy.
Accordingly Automotive News EuropeThe German automobile manufacturer’s renewed commitment to large combustion engines is due, among other things, to the continued high demand in the USA.
“High-performance engines remain a central part of our strategy,” said a BMW spokesman ANEand added that North American demand for V8 vehicles remains “above average” and that the company does not expect it to slow down in the near future.
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Speculation that BMW is preparing to phase out its largest engines intensified after BMW halted V8 production at its Steyr plant in Austria at the end of 2025.
However, production of the V8 and V12 engines was relocated to the British BMW plant in Hams Hall, where the company has long been producing three- and four-cylinder gasoline engines and, since 2022, large-volume engines.
While British-built V12 engines are now only supplied to BMW’s super-luxury brand Rolls-Royce, V8 engines continue to power the M5 and M8 sports cars as well as some versions of the 7 Series sedan, as well as the large X5, X6, X7 and XM SUVs, which remain popular in the US.
Demand for models with large-displacement engines has led BMW to retain some of its internal combustion engine production at its main plant in Munich, although the company has been retooled to produce Neue Klasse electric vehicles.
So about 400 workers continue to make cylinder heads, crankcases and crankshafts for V8 and V12 engines in Munich, in a department that has reportedly been dubbed a “Gallic village” – the last European bastion for large BMW engines in a factory that is set to become one of BMW’s most advanced EV factories.
ANE reported that engine production was scheduled to cease completely by the end of 2027, but BMW declined to commit to a firm end date, saying there was no timeline for the closure.
The news follows the cancellation of the European Union’s controversial plan to effectively ban the sale of new gasoline and diesel-powered vehicles from 2035 after lobbying by automakers and local governments.
Instead of requiring all new cars sold in Europe to be zero-emissions and therefore effectively electric cars, the EU is now considering a proposal to require a 90 percent reduction in CO2 exhaust emissions for manufacturers’ new car fleets compared to 2021 levels.
The move follows increasing pressure from Germany, Italy and major European automakers concerned about their competitiveness against Tesla and Chinese electric vehicle makers.
The proposal also reportedly includes a three-year transition period (2030-2032) during which automakers will have to reduce their cars’ CO2 emissions by 55 percent compared to 2021, while the target for commercial vehicles will be reduced from 50 to 40 percent.
“For new registrations from 2035 onwards, a reduction in CO2 emissions by 90 percent instead of 100 percent is now mandatory for the automobile manufacturers’ fleet goals,” said politician Manfred Weber Picture in December 2025, according to Automotive News.
“From 2040 onwards there will be no 100 percent target. This means that the technology ban for combustion engines is off the table.”
Separately, the European Commission will unveil new rules designed to encourage the transition away from fossil fuels in the automotive industry, with changes expected to how fuel consumption and emissions are calculated for PHEVs.
The weakening of emissions targets for new vehicles in Europe follows a proposal from President Donald Trump’s administration to significantly weaken new vehicle fuel economy targets for automakers.
The National Highway Traffic Safety Administration (NHTSA) has proposed increasing the Corporate Average Fuel Economy (CAFE) standard by 0.25 to 0.5 percent per year to achieve a target of 34.5 mpg (6.8 L/100 km) by 2031 – less than the 50.4 mpg (4.7 L/100 km) CAFE target proposed in 2024 under President Joe Biden.
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