BMW To Spend $1B To Expand Output At South Carolina Factory By 50%

Mar 28 2014, 11:33am CDT | by

BMW said Friday it would spend $1 billion to boost production at its South Carolina assembly plant by 50 percent in the next two years, one more sign that the United States has become a competitive site for manufacturing and an attractive staging ground for exports.

It will be the fifth expansion of the Spartanburg, S.C., plant since BMW first started producing cars in the United States 20 years ago. By 2016, BMW will be able to produce up to 450,000 vehicles a year, up from 300,000 currently. The investment will add 800 jobs to the site, increasing the total workforce to 8,800.

The expansion is needed to meet strong global demand for BMW’s crossover SUVs, including a new, larger model announced Friday, the BMW X7. Spartanburg already produces the X3, X5, X6, and the new X4 crossovers. A new plug-in hybrid version of the X5 will be introduced soon.

“This expansion means Spartanburg will have the largest production capacity of any plant in our global production network,” said Norbert Reithofer, chairman of the BMW Board of Management. “This plant already exports, on average, 70% of its annual production with a 2013 value of more than $7.5 billion which, according to the U.S. Department of Commerce, makes BMW the largest U.S. vehicle exporter to non-NAFTA countries.”

The BMW Group strives for a good balance of growth among all markets and continents. The Spartanburg plant is an important building block in our international network of 28 production and assembly facilities in 13 countries today and makes a vital contribution to profitable, globally balanced growth,” said Harald Krüger, BMW’s production chief.

Since production began 20 years ago, in 1994, the Spartanburg plant has produced over 2.6 million vehicles for BMW customers around the world.

Source: Forbes Auto

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Tim Cook Just Made The Case For A Low-Priced iPhone
Tim Cook Just Made The Case For A Low-Priced iPhone
During Apple’s earnings call yesterday, CEO Tim Cook was asked a seemingly harmless question about the impact of trade-in programs on iPhone sales. Cook’s wide-ranging response was that he felt trade-ins were good for...
 
 
A Tech Company With An Auto Focus
A Tech Company With An Auto Focus
When three guys from an accounting firm in Pune came up with the idea of offering IT services back in the late 1980s, they were entering uncharted territory. Personal computers were still getting popularized, and Indian...
 
 
HSBCVoice: What's Driving Mexico's Growth?
HSBCVoice: What's Driving Mexico's Growth?
By Daniel Broderick Mexico’s increasing purchasing power, as well as key reforms passed by recently elected President Enrique Peña Nieto, have contributed to what economic experts at HSBC say may become the world’s...
 
 
Google Dominates Autonomous Cars Influence as Auto Makers Lag Behind
Google Dominates Autonomous Cars Influence as Auto Makers Lag Behind
Self-driving cars are not yet on dealer lots, but the space is heating up and it’s being led by tech companies while traditional automakers make efforts to catch-up. A new Appinions’ Influence study released today,...
 
 
 

Latest from the Network

Bolt blasts officials for reducing Gay's doping ban
Glasgow (Scotland), July 24 (IANS/CMC) Sprint super star Usain Bolt has criticised anti-doping officials for reducing Tyson Gay's doping ban after he tested positive for an anabolic steroid last year. Gay and Bolt's...
Read more on Sport Balla
 
Superb Smith's century takes Tridents to victory
Bridgetown (Barbados), July 24 (IANS/CMC) A century by Dwayne Smith fired Barbados Tridents to their second win of the Caribbean Premier League (CPL), with a convincing 29-run triumph over St Lucia Zouks in their first...
Read more on Sport Balla
 
Tim Cook Just Made The Case For A Low-Priced iPhone
During Apple’s earnings call yesterday, CEO Tim Cook was asked a seemingly harmless question about the impact of trade-in programs on iPhone sales. Cook’s wide-ranging response was that he felt trade-ins were good for...
Read more on Auto Balla
 
A Tech Company With An Auto Focus
When three guys from an accounting firm in Pune came up with the idea of offering IT services back in the late 1980s, they were entering uncharted territory. Personal computers were still getting popularized, and Indian...
Read more on Auto Balla
 
Natalie Imbruglia wants to join dating app Tinder
Los Angeles, July 24 (IANS) Actress-turned-singer Natalie Imbruglia, who is single, reportedly wants to sign up to the cult dating app Tinder. The 39-year-old has admitted that her lack of success in her love life...
Read more on Celebrity Balla
 
Nigeria's abducted girls not forgotten: UN chief
United Nations, July 24 (IANS) UN Secretary General Ban Ki- moon Wednesday voiced his full support for the worldwide vigils to mark 100 days since the abduction of schoolgirls in Nigeria by Boko Haram terrorists,...
Read more on Politics Balla
 
Colombian military kills 13 rebels
Bogota, July 24 (IANS) Colombia's ministry of defence said Wednesday the armed forces killed 13 Leftist rebels and captured eight in two separate operations. The first operation took place between the towns of Tame...
Read more on Politics Balla
 
Kerry wraps up Israel visit, no sign of breakthrough
Jerusalem, July 24 (IANS) US Secretary of State John Kerry left Israel late Wednesday after a day-long visit during which he tried to broker a ceasefire agreement to end the ongoing fighting between Israel and Hamas....
Read more on Politics Balla
 
US says blame for downed plane lies with Putin
Washington, July 24 (IANS) The US said Wednesday that blame for the crashed Malaysian airliner lies directly with Russian President Vladimir Putin. State Department spokesperson Marie Harf told a regular briefing that...
Read more on Politics Balla