BMW: Spartanburg Remains ‘Pivotal’ to Global X3 Production

BMW says its Spartanburg plant in South Carolina will continue to play a key role in the production of its best-selling model, the X3 SUV, despite the growing influence of its Rosslyn factory in South Africa to its global operations and a heavy focus on future electric-vehicle production at its U.S. operations.

The two BMW plants produce the X3 for both left- and right-hand-drive markets, with a third factory run in a long-established partnership with Chinese automaker Brilliance in Shenyang, China, responsible for the production of a long-wheelbase version of the Audi Q5 and Mercedes-Benz GLC-rivaling model for sale exclusively in China.

Together, the three plants have combined to meet strong global demand for the outgoing third-generation X3 in recent years.

With 355,000 sales worldwide in 2023, the X3 once again beat the 3-Series sedan to retain its title as the German automaker’s best-selling individual model, despite it being in its final year of production before the introduction of the fourth-generation X3 in November.

BMW says the U.S. has traditionally accounted for 41% of global X3 sales, making it the largest single market for the popular SUV model since it was introduced in 2003.

With 63,172 sales, it accounted for 17.4% of BMW’s total U.S. sales in 2023, making it the second most-popular BMW behind the X5, which recorded 72,573 sales in the U.S. last year. 

With the launch of the fourth-generation internal-combustion X3, BMW has given its Rosslyn plant exclusive responsibility for the production of a new plug-in hybrid X3 model planned for sale in selected global markets.

The Rosslyn plant has produced the X3 since 2018.

The new X3 PHEV will be produced alongside other fourth-generation gasoline- and diesel-powered X3 models – a move initially seen as a blow to operations at BMW’s Spartanburg factory.

However, BMW has revealed to WardsAuto that its Spartanburg plant will continue to retain sole responsibility for the production of the more highly positioned X3 M50 xDrive M-Performance model as well as a new X3 M (pictured, below) variant of the fourth-generation X3, in combination with standard gasoline and diesel X3 models.

The 30-year-old Spartanburg plant “remains pivotal to meeting production demand for the X3,” a spokesman says at the international launch of the new X3 in Munich, Germany.

“The increased activities at Rosslyn are designed to complement those in Spartanburg. It is not a case of the two competing against one another, but providing the best, the most economical and most efficient solution to meeting production needs for our best-selling model on a global basis.”

Additionally, WardsAuto can confirm production of the existing second-generation X4 will continue on an exclusive basis at the Spartanburg plant until mid-2025.

Other models currently produced at the South Carolina factory include the internal-combustion-engine X5, X6 and X7 as well as the XM PHEV.

Recent investments made by BMW at its Spartanburg plant and surrounding infrastructure are part of plans to continue production of the X3 there until at least 2031. Additionally, BMW plans to produce at least six electric models based on the company’s Neue Klasse platform at the site by 2030. 

Included is a $200 million investment in a new press shop, which BMW says has created more than 200 new jobs within its U.S. operations. 

The new press shop, BMW’s first in the U.S., will produce the body sides, doors, fenders and tailgate of the new X3 in steel and aluminum.

A further investment is to be made in an assembly shop in Woodruff, SC, for high-voltage automotive batteries for future electric-powered BMW models to be produced at Spartanburg.

Construction of the new assembly shop, earmarked to produce sixth-generation batteries to be used by an upcoming production version of the Neue Klasse X concept revealed in March 2024 and set for U.S. sale in 2026 as the iX3, began last year.