BMW Expanding Spartanburg for X7 Production
BMW is expanding annual capacity in South Carolina 50% to 450,000 vehicles to produce the all-new X7 3-row utility vehicle. Plus, the plant has begun building the new X4, which will go on sale this summer.
March 28, 2014
The resurging popularity of large 3-row utility vehicles in the U.S. leads BMW to announce an expansion of its Spartanburg, SC, plant to assemble the new X7, which will be the brand’s largest vehicle, slotting in above the X5.
During a ceremony to celebrate the announcement today at the plant, BMW Group Chairman Norbert Reithofer says U.S. dealers have demanded a more spacious product that competes with the Lexus LX, Mercedes GL, Cadillac Escalade, Lincoln Navigator and Infiniti QX.
The X7 is intended to fill that void. Details about the vehicle are scarce. A launch date remains unclear, but BMW officials say plant renovations should be complete by late 2016, allowing Spartanburg to produce 450,000 vehicles, up from 297,184 in 2013.
With that timeframe, the X7 could be in production in 2017. A new body shop is included in the project.
Spartanburg is the sole source worldwide for the X3, X5 and X6, and more than 70% of output is exported to 140 countries. WardsAuto classifies the models as unibody-based CUVs, but BMW refers to them as “sport activity vehicles.”
In 2012, the facility achieved record output of 301,519 vehicles, according to WardsAuto data. Ten years ago, the plant produced 143,916 X5s and Z4 roadsters. Current total daily output is 1,100 vehicles. Since 1994, the facility has manufactured 2.6 million vehicles.
Despite its size, Reithofer pledges the X7 will be “a true BMW. I promise this SAV will also be highly fuel-efficient while offering outstanding driving performance.”
Between 2014 and 2016, BMW will invest $1 billion in the facility, creating 800 new jobs and boosting overall employment to 8,800 and manufacturing capacity from 300,000 to 450,000 units annually.
“Spartanburg will become the largest plant in our global production network, a new milestone in the history of the BMW Group,” Reithofer says.
Since 1992, the automaker says it has invested $6.3 billion in its Spartanburg operations.
BMW also uses today’s event to roll out the latest vehicle now in production at the plant, the new 2-row coupe-like X4, which will be on display at the New York auto show in April and go on sale in July.
Later in 2014, a plug-in hybrid version of the X5 will be produced at the facility.
BMW’s manufacturing network includes 28 facilities in 13 countries.
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