BMW is transforming part of its Steyr, Austria, factory from V8 engine production to hydrogen fuel cell manufacturing. After ending V8 production there in late 2025, the company is investing €50 million to convert the facility and install a new assembly system for fuel cell powertrains. While much of the existing infrastructure will be reused, significant modifications are underway.

Around 50 employees will work directly on fuel cell production, with former V8 specialists already undergoing training in Munich. BMW plans to begin pre-production of hydrogen drivetrains in 2027, followed by full production in 2028 for the iX5 Hydrogen, which is expected to become the company's first mass-produced fuel-cell vehicle. The project is being developed in partnership with Toyota, one of the strongest supporters of hydrogen technology in the automotive industry.

Despite the shift away from V8s, Steyr remains a major engine manufacturing hub, continuing to build BMW’s B57 diesel and B58 gasoline inline-six engines, which are also used by Toyota, Ineos, and Morgan. V8 production has moved to BMW’s Hams Hall plant in the UK, which also produces Rolls-Royce V12 engines and smaller BMW and MINI powerplants.

Meanwhile, BMW’s next-generation X5 (G65) is scheduled to debut this summer. The model lineup will include gasoline, diesel, plug-in hybrid, and fully electric variants, while the high-performance X5 M is expected in 2028 with both V8-powered and electric versions.