Success story: BMW Group Plant Spartanburg in the US becomes largest production location within 25 years

Munich/Spartanburg. The BMW Group has been a
committed “local player” in the US market for a quarter-century: On 23
June 1992, the BMW Group announced its decision to build its US plant
in Spartanburg, South Carolina. Continuous expansion of the plant with
extensive additions and the decision to build the successful BMW X
models in Spartanburg have made the plant the largest manufacturing
facility in the BMW Group production network within the space of 25
years. During the ceremony to mark the anniversary, the all-new BMW X3
rolled off the production line in Spartanburg. More than 1.5 million
BMW X3 vehicles have been delivered to customers worldwide since it
was first launched at the end of 2003. The new BMW X3 will be launched
in fall 2017.

 

Harald Krüger, Chairman of the Board of Management of BMW AG, stated
at the ceremony: “The BMW Group’s success story in the US would not
have been possible without the open arms and warm hearts of the people
and elected officials in the great state of South Carolina and the
surrounding region. Our relationship with South Carolina has been
built upon decades of professionalism, mutual trust and respect – and
goes far beyond just building great cars.”

 

The BMW Group has invested eight billion US dollars in the production
location to date and produced around 3.9 million vehicles since going
online on 8 September 1994. “From 2018 to 2021 we will invest further
600 million US dollars in manufacturing infrastructure for future
generations of the BMW X models,” said Harald Krüger. At present, the
plant is getting ready for production of the all-new BMW X7, which
will be launched onto the market in late 2018.

 

The BMW Group produces BMW X models in Spartanburg for the US and
global markets. With record production of more than 411,000 units in
2016, Spartanburg is the largest BMW Group plant worldwide. Around
1,400 BMW X3, X4, X5, and X6 vehicles come off the assembly line every
working day. Maximum production capacity is 450,000 vehicles per year.

 

Around 70 percent of the vehicles produced in Spartanburg are
exported to more than 140 countries worldwide. According to the US
Department of Commerce, the BMW Group is the largest vehicle exporter
from the US in terms of monetary value. In 2016, 287,700 BMW vehicles
with a total value of more than 10 billion US dollars were exported
from Spartanburg: 86 percent were shipped from the Port of Charleston,
with the remaining 14 percent dispatched from five other ports in the
Southeastern United States.

 

The BMW Group has 235 local suppliers in the US. In 2016, 80 percent
of the BMW Group’s purchasing volume in the NAFTA area originated in
the US. The US is the company’s second-largest purchasing market,
after Germany, and accounts for 5.2 billion euros.

 

Harald Krüger: “Free trade has made this success story in the US
possible. I firmly believe in free trade and open markets. It is
essential for global businesses and economies around the world to
flourish. We will keep investing in our people and in our business in
the US. Therefore, I remain confident that our footprint and
commitment will continue to grow not only in the great state of South
Carolina, but also in the United States in the years to come.”

 

The Spartanburg plant employs more than 9,000 people. “By 2021we will
create further 1,000 jobs,” stated Harald Krüger. “Training and
qualifying our associates is key to our future success.” Training at
the plant is based on the German dual apprenticeship training system
that combines classroom learning with practical experience. In the
past ten years, the BMW Group has invested more than 220 million US
dollars in vocational and continued training at its Spartanburg
facility, with another 200 million US dollars planned over the next
five years. The training programs are run in cooperation with local
colleges. The “BMW Scholars” apprenticeship program launched in 2011
is currently preparing around 100 apprentices for their careers within
the plant.

 

According to an independent study of University of South Carolina
(Moore School of Business), the nationwide economic impact of BMW
Group Plant Spartanburg is 38.5 billion US dollars annually.

 

US sales market

In the first five months of 2017, the BMW Group delivered 137,916 BMW
and MINI vehicles to customers in the US (-4.8%). Sales of Sports
Activity Vehicles rose 13.8% and accounted for 46.8% of total US sales
in the year to the end of May (56,233 vehicles). 37.1% of the vehicles
sold in the US over the same period were produced at BMW Group Plant
Spartanburg. The BMW Group retail network in the USA comprises 657
dealerships. In total, the company supports approximately 70,000
direct and indirect jobs in the US. According to an independent study
of University of South Carolina (Moore School of Business), the
multiplier effect results in even more than 120,000 jobs, if further
50,000 jobs outside the automotive industry are also taken into account.

 

Current photo material from the ceremony to mark the “BMW Group Plant
Spartanburg 25th anniversary” can be found under
http://www.spartanburg.bmwpictures.de/
.

 

 

 

If you have any questions, please contact:

 

Corporate Communications

 

Saskia Eßbauer, Business and Finance Communications,
Saskia.Essbauer@bmw.de

Telephone: +49 89 382-18364

 

Glenn Schmidt, Head of Business and Finance Communications,
glenn.schmidt@bmwgroup.com

Telephone: +49 89 382-24544

 

Sandra Schillmöller, Communications Production Network,
Sandra.Schillmoeller@bmw.de

Telephone: +49 89 382-12225

 

Frank Wienstroth, Head of Communications Production Network,
Frank.Wienstroth@bmw.de

Telephone: +49 89 382-54459

 

Media website:
www.press.bmwgroup.com

Email:
presse@bmw.de

 

 

 

 

 

The BMW Group

 

With its four brands BMW, MINI, Rolls-Royce and BMW Motorrad, the BMW
Group is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
As a global company, the BMW Group operates 31 production and assembly
facilities in 14 countries and has a global sales network in more than
140 countries.

 

In 2016, the BMW Group sold approximately 2.367 million cars and
145,000 motorcycles worldwide. The profit before tax was approximately
€ 9.67 billion on revenues amounting to € 94.16 billion. As of 31
December 2016, the BMW Group had a workforce of 124,729 employees.

 

The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy.

 


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