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BMW’s $1 Billion Expansion At Spartanburg, South Carolina, Plant To Provide Its Largest Production Capacity Worldwide

Area Development Online News Desk (03/28/2014)
BMW Group plans to invest $1 billion as part of a major production expansion at the company's Spartanburg, South Carolina, manufacturing campus.

"We will expand the plant's annual production capacity by 50 percent up to 450,000 vehicles by the end of 2016. Today's capacity is around 300,000 vehicles. This investment will also create an additional 800 jobs, increasing the total workforce to 8,800 on site,” Dr. Norbert Reithofer, BMW Chairman of the Board of Management said.

"We are expanding BMW Plant Spartanburg as our center of competence for production of BMW X models and broadening our product portfolio. This expansion means Spartanburg will have the largest production capacity of any plant in our global production network. This plant already exports, on average, 70 percent 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,” added Reithofer.

The additional investment will be used to increase capacity, which is necessary to meet strong global demand for BMW X models. "Plant Spartanburg was built to enhance and expand the BMW line-up, underscoring the BMW Group commitment to the United States," said Dr. Reithofer. "In addition to the X3, X5, X6, and the new X4, we are today announcing another all-new, larger X model to be manufactured exclusively at this plant for our world markets: the X7."

Harald Kruger, Board of Management member for Production explained the important role of the US for the BMW Group production strategy: "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."

"Our US plant is the best example of our successful strategy of 'production follows the market'. The state of South Carolina has supported us as a valuable and reliable partner throughout our 20-year involvement in the region – making the United States our second home,” he added.

"This is the fifth expansion since production began 20 years ago and represents another major investment," said Manfred Erlacher, President/CEO of BMW Manufacturing. "The increase in annual capacity, the number of models produced, and the number of jobs on site, reinforce the major role BMW is playing in the region's economic vitality through technological innovation, environmental stewardship, and development of a highly skilled workforce."

In 2013, a total of 297,326 vehicles were manufactured in Spartanburg, with 1,100 vehicles currently produced per working day. Total employment at the site reached 8,000 in March 2014.

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