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BMW Group Invests $750 Million In U.S. Plant.
Written by: SPEED Staff
SPEEDtv.com   
03/10/2008 - 04:17 PM
Spartanburg, S.C.
 
BMW's Spartanburg plant first opened in 1995, and will now be expanded. ยป More Photos

The BMW Group is investing $750 million in an expansion of its Spartanburg plant. The move will raise production capacity from 160,000 to 240,000 units by 2012 and boost the company’s total investment in the plant to $4.2 billion.

The expansion will also lead to a hike in purchase and export volumes into and out of the NAFTA region, which will contribute considerably to the BMW Group’s natural hedging strategy.

After the expansion, the Spartanburg plant will manufacture the BMW X3, X5 and X6 models for world markets. “Centralizing our know-how for BMW X models in Spartanburg will enable us to work even more efficiently going forward. In addition, it was a logical step for the BMW Group as a global player to increase production capacity in its largest market,” said BMW AG Board Member Frank-Peter Arndt.

“The boost in production capacity will positively impact the logistics, suppliers and distribution networks that support the manufacturing processes,” said Josef Kerscher, President of BMW Manufacturing
Co. While the supplier network may grow, existing supplier companies will ramp up operations to provide automotive parts for the higher production levels, doubling parts container traffic and significantly increasing exports through the Port of Charleston.

BMW has invested $3.5 billion in its South Carolina operations to date. Taking the $750 million of new money into account, the US$ 600 million originally pledged has now swollen to total investment of some $4.2 billion.

The nine new suppliers in South Carolina aimed for in the company’s original plans have now become 52. Of those, 40 chose the state explicitly because of the presence of the BMW plant. BMW’s North American supplier network has grown from 22 in 1992 to 194 companies today.

Vehicle production at the Spartanburg plant has grown from 429 vehicles in 1994 -- the first year of production -- to 157,530 units in 2007. In the same period the BMW Group’s sales volumes in the United States increased from 65,000 to 335,000 units.
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