BMW confirms US expansion with X7 SUV planned for Spartanburg
BMW will expand its Spartanburg, South Carolina plant to boost output beyond 400,000 vehicles and add a new X7 SUV to its model line-up.
BMW will expand its US manufacturing presence by increasing capacity at its Spartanburg, South Carolina plant and introducing a new X7 SUV to its line-up. The move will take BMW’s US output from around 300,000 vehicles to more than 400,000 per year, according to reports from Germany.
The plans, first reported by Handelsblatt, come as BMW prepares for a major announcement at the Spartanburg facility. The company has scheduled an event for 28 March 2014, where it is expected to detail both the plant expansion and the addition of the X7 model, which will be built specifically for the US market.
X7 SUV: BMW’s answer to US demand for large vehicles
The X7 will be BMW’s largest SUV, targeting buyers seeking a premium seven-seat vehicle. It is expected to compete directly with models such as the forthcoming Volkswagen CrossBlue and the anticipated Audi Q9, both designed for US tastes and due to be produced locally. BMW’s decision to build the X7 in South Carolina reflects the strong and sustained demand for large SUVs in North America.
The Spartanburg plant, already the company’s largest production site worldwide, currently builds the X3, X4, X5 and X6. The addition of the X7 will further strengthen BMW’s position in the US SUV market, which has seen steady growth as buyers shift away from saloons and smaller vehicles. The plant has undergone several expansions since opening in 1994, but this latest investment marks its most ambitious target yet for annual output.
Impact on jobs and competition
The expansion is expected to create new jobs at the Spartanburg facility, although BMW has not released specific figures ahead of the official announcement. South Carolina Governor Nikki Haley has welcomed the move as further evidence of the state’s manufacturing strength. The project will also increase competition among premium SUV makers in the US, with BMW aiming to secure a larger share of a segment dominated by domestic and European brands.
The X7’s introduction is part of a wider trend among manufacturers to tailor larger, more luxurious SUVs to North American buyers. Volkswagen, for example, plans its own seven-seat CrossBlue SUV for US production, and Audi is preparing the Q9 to rival BMW’s new flagship. The X7’s development and production in South Carolina will allow BMW to respond quickly to local market demands and avoid import tariffs.
What to expect from the March announcement
BMW’s official event at the Spartanburg plant on 28 March 2014 is expected to confirm the expansion details, new investment figures and a timeline for the X7’s production. The announcement will clarify BMW’s strategy for the US market and provide further information on how the company intends to compete with rivals also investing in American SUV manufacturing.
For more on how other manufacturers are responding to the US SUV market, see Volkswagen’s plans for a new seven-seat SUV for the US market: /vw-is-working-on-new-7-seat-suv-for-the-us
