BMW has scrapped plans to end production of its trademark 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 Neue Klasse electrification strategy.
According to Automotive News Europe, the German automaker’s renewed commitment to large combustion engines is due in part to continuing high demand in the US.
“High-performance engines remain a central part of our strategy,” a BMW spokesperson told ANE, adding that North American demand for V8 vehicles remains “above average” and that the company doesn’t expect it to slow down in the near term.
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Speculation that BMW was preparing to phase out its biggest engines gathered pace after BMW ended V8 production at its Steyr plant in Austria at the end of 2025.
However, production of V8 and V12 engines has been transferred to BMW’s Hams Hall factory in the UK, where the company has long produced three- and four-cylinder petrol engines, as well as large-displacement engines since 2022.
While V12s built in the UK are now supplied only to BMW’s super-luxury brand, Rolls-Royce, V8s continue to power the M5 and M8 sports cars, and some versions of the 7 Series limousine, as well as the X5, X6, X7 and XM large SUVs, which remain popular in the US.
Demand for models powered by large-capacity engines has led BMW to retain a portion of its combustion-engine manufacturing operations at its main plant in Munich, despite it being retooled to produce Neue Klasse EVs.
As such, about 400 workers continue to manufacture cylinder-heads, crankcases and crankshafts for V8 and V12 engines in Munich, in a department that has reportedly been dubbed ‘Gallic village’ – the last European bastion for big BMW engines in a plant that will become one of BMW’s most advanced EV factories.
ANE reports that engine production had been scheduled to wind down entirely by the end of 2027, but BMW has now declined to commit to a fixed end date and says there is no timetable to shut it down.
The news follows axing of the European Union’s controversial plan to effectively ban the sale of new petrol- 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 EVs, the EU is now considering a proposal to mandate a 90 per cent reduction in CO2 tailpipe emissions for manufacturers’ new-vehicle fleets compared to 2021 levels.
The move follows mounting pressure from Germany, Italy, and major European automakers concerned about their competitiveness against Tesla and Chinese EV-makers.
The proposal reportedly also includes a three-year transition period (2030-2032) during which automakers must cut CO2 emissions from their cars by 55 per cent compared to 2021 levels, while the target for commercial vans would ease from 50 to 40 per cent.
“For new registrations from 2035 onwards, a 90 per cent reduction in CO2 emissions will now be mandatory for car manufacturers’ fleet targets, instead of 100 per cent,” politician Manfred Weber toldBildin December 2025, according toAutomotive News.
“There will also be no 100 per cent target from 2040 onwards. This means that the technology ban on combustion engines is off the table.”
Separately, the European Commission is set to unveil new rules designed to promote the transition away from fossil fuels used in the automotive industry, with changes expected to be introduced to the way fuel economy and emissions are calculated for PHEVs.
The watering down of new-vehicle emissions targets in Europe follows a proposal by the US administration of President Donald Trump to significantly weaken new-vehicle fuel economy targets for automakers.
The National Highway Traffic Safety Administration (NHTSA) has proposed an increase in the Corporate Average Fuel Economy (CAFE) standard of between 0.25 and 0.5 per cent annually to reach a target of 34.5mpg (6.8L/100km) by 2031 – less than the 50.4mpg (4.7L/100km) CAFE target proposed in 2024 under President Joe Biden.