The new facilities will assist in supplying parts to the 7 million square foot BMW Plant Spartanburg when they open in 2022.
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The $200 million Spartanburg expansion by BMW
BMW Manufacturing Co. President and CEO Robert Engelhorn said on March 2 that the company is investing $200 million to expand its Spartanburg plant, which would result in the creation of 200 new jobs in the Upstate.
A 219,000 square foot body panel production plant is the form of the expansion, and it is anticipated to go online by the summer of 2024. The factory will manufacture doors, fenders, exterior body panels, and liftgates, according to Engelhorn, who made the announcement during remarks to the SC Automotive Summit at the Hyatt Regency.
Engelhorn expressed his excitement about bringing this new technology to Plant Spartanburg. BMW’s commitment to South Carolina and the United States is strengthened with this investment.
In his remarks, South Carolina Governor Henry McMaster praised the state’s achievements in the automotive sector since 1992, when BMW announced it would locate its first production facility outside of Germany in the Upstate. McMaster asserted at the time that there were no automotive jobs in South Carolina. There are currently 72,000.
According Governor McMaster, “BMW’s involvement in South Carolina for almost three decades has propelled the extraordinary rise of our automotive industry and paved the road to our state’s position as a global automotive powerhouse.”
How BMW established a supply chain hub in Spartanburg, South Carolina
With a proposal for an inland port that is now utilized by shippers ranging from Adidas to John Deere, the automaker approached the state and Norfolk Southern.
South Carolinians waited tensely, particularly those in the upstate area near Greenville. In 1992, the region was considered as a potential location for BMW’s new production facility. A tempting offer was crafted by legislators and deal makers that, if accepted, may have a long-term effect on the state’s economy.
In the early 20th century, the area was home to one of the nation’s greatest textile manufacturing sectors. This area was seeking success after this business was mostly outsourced. But even those who were eagerly awaiting BMW’s decision to settle in South Carolina had no idea how the German business would go on to shape the state’s economic future. BMW would establish Spartanburg, South Carolina, as a center of logistics with its entry.
When then-Gov. Carroll Campbell signed legislation in April 1992 offering BMW $35 million in incentives if it chose to operate in South Carolina, the state was just as optimistic. According to Bloomberg Businessweek, the state reportedly guaranteed $5 million in further tax benefits.
According to Automotive News, the state received its resolution in June 1992 with a statement made at the Greenville Marriott Hotel during a lunch of bratwurst and Bavarian cabbage. South Carolina would soon welcome BMW.
The business chose South Carolina as its new home for a number of reasons at the time.
These explanations have held up better throughout time than others:
- Jim Tolson, a plant controller and administrator for the Greenville operations of German-based Robert Bosch Corp, told Automotive News in 1992 that there were European restaurants in the area. “This place has a distinct European feel about it. It seems sense that a corporation like BMW would be drawn to such setting.”
- Despite its significant state incentives, South Carolina had a reliable supply chain setup. According to a 1993 article in The New York Times, BMW was drawn to the area because of “the closeness of both the port of Charleston and major automotive suppliers.”
The choice was influenced by infrastructure, according to Steve Wilson, a BMW media communications specialist who the business has dubbed “the living archive of BMW Spartanburg.”
Wilson stated, “We had and still have a good interstate system. Because BMW had long-term intentions for its patent factory to export cars outside of the United States, “the deepwater port was a crucial factor.”
The Spartanburg site was close to an airport, and the state had a rail network. But at the time, these resources weren’t quite in the position where BMW needed them to be.
There were no international planes passing through the Greenville-Spartanburg Airport in the early 1990s. According to Automotive News, a condition of the deal that drew BMW to the state was that the airport extend its runway to let the automaker’s Transatlantic 747 freight planes to land—less than a 10-minute drive from the manufacturing site.
And as soon as BMW began operating in the area, the facility’s freight volume rapidly increased, rising by 344% YoY between 1992 and 1993. According to statistics from the airport, volume has been increasing.
Biden promotes a $4,500 tax credit for automobiles built in the United States, and BMW promises to produce EVs at a plant in South Carolina.
In a sign of the rising demand for zero-emission vehicles in the United States, BMW announced on Wednesday that its Spartanburg factory in South Carolina would receive an electric vehicle model.
Since the Biden administration is advocating for a clause in its budget bill that will offer an additional $4,500 federal tax credit to union-built EVs manufactured in the U.S., the question of where EVs are produced has gained more significance recently.
Oliver Zipse, the chief executive, stated that the start of EV production in the United States is linked to the precise order in which upcoming models will be released, implying that it might not happen until those nameplates made in Spartanburg, like the X7 full-size SUV, are scheduled to get a battery-powered version.
In response to a question from an analyst on Wednesday, the BMW CEO said: “It depends on the actual introduction of the vehicles, so yes, there will also be electric cars over time, but it’s too early to predict the specific date.”
None of the X1, 5 Series, or 7 Series sedans—the next three BMW brand vehicles to use a fully electric drivetrain—are currently produced in the United States.
In 2020, BMW will produce 361,365 units of the X3, X4, X5, X6, and X7 model lines at its largest manufacturing facility. It is also the largest U.S. car exporter in terms of cash value, with $8.9 billion worth of vehicles exported abroad.
Despite the fact that it might not make any electric cars, it already has a high-voltage battery assembly. That’s because X3 and X5 plug-in hybrids, which have short electric-only EPA ranges of up to 30 miles depending on the model, made up around 13% of the plant’s output last year.
As to why BMW relocated to SC,
BMW started looking for a suitable location for its first complete vehicle manufacturing facility outside of Germany more than 25 years ago. The luxury car manufacturer chose Spartanburg County, South Carolina, in search of better access to the North American market. Additionally, a 318i, the first BMW built in North America, rolled off the company’s Upstate auto production line in 1994. The arrival of BMW has changed everything for the Palmetto State and demonstrated to the rest of the globe that South Carolina has the manpower required to develop sophisticated, high-tech products.
A $600 million investment that initially generated 500 employment has grown tremendously. BMW currently employs over 11,000 people in the Upstate and has invested more than $7 billion in its South Carolina automotive businesses. These automotive facilities in Spartanburg County have grown significantly as a result of this investment, and they are now the company’s largest globally in terms of volume.
BMW vehicles cost less in South Carolina?
THE GOOSE CREEK, S.C.
Buying a used BMW near the brand’s assembly plant in Greer, South Carolina, can help customers save money, according to a report issued today by the automobile buyer intelligence company Autolist.
According to the analysis, which encompassed more than 56 million automobiles countrywide and 3 billion unique data points across all makes and models, the typical used BMW in South Carolina is $398 less expensive than the national average.
The investigation found that the M3 was the BMW with costs in South Carolina that were the most affordable when compared to the national average, at $657 less. The 3 series, the most popular BMW, was discovered to cost $160 less than the national average.
According to Autolist’s research, there are statistically significant variances in list prices across the country at the state, county, and even local levels. Results revealed that while dealer density was a predictable significant contributor to price differentials, other factors such as manufacturer community presence and geographic requirements also had an impact. In the instance of South Carolina, the prices were influenced by the number of dealers as well as the presence of the manufacturer, in this case, BMW.
Goose Creek was discovered to be the #12 most cheap place in South Carolina to purchase a BMW 3 Series, with BMW 3 Seriess costing $1,398 more than the state average. The average automobile in Goose Creek was found to cost $505 more than the state average across all makes and models.
Because of this, South Carolinians have the chance to save money on used BMWs by buying them from locations closer to the BMW facility.
BMWs are produced in South Carolina?
The “Stars and Stripes” X5 is shown at the BMW Zentrum (visitor center) at the Spartanburg facility (E53).
Since 1956, BMW vehicles have been legally sold in the US, and since 1994, they have also been produced here. In 1975, the first BMW dealership in the US opened its doors. BMW ranked as the 12th best-selling brand in the US in 2016.
With a current production rate of almost 1,500 automobiles per day, the BMW manufacturing facility in Greer, South Carolina, has the greatest production volume among all BMW facilities globally. The Spartanburg facility manufactures the SUV models X3, X4, X5, X6 and X7.
BMW’s North American businesses include include sales, marketing, design, and financial services operations in the United States, Mexico, Canada, and Latin America, in addition to the South Carolina manufacturing unit. BMW’s North American headquarters are situated in Woodcliff Lake, New Jersey, at 300 Chestnut Ridge Road. Dublin, Ohio serves as the company’s North American headquarters for its sizable financial services subsidiary, which is in charge of captive lending for BMW automotive, BMW Motorsport, and Rolls-Royce vehicles when customers choose to lease the cars or decide to finance them directly through the business.
What is produced by BMW in South Carolina?
In South Carolina, BMW Manufacturing creates the BMW X3, X5, and X7 Sports Activity Vehicles as well as the X4 and X6 Sports Activity Coupes.
Is there a union at BMW South Carolina?
Since South Carolina is a “right-to-work” state, BMW’s facility is not unionized, unlike General Motors, Ford Motor Company, and Fiat Chrysler Automobiles (FCA), and employee attempts to unionize in 2004 were unsuccessful.
Can you purchase a BMW from the South Carolina factory?
When you shop at BMW of Columbia, you can acquire your next BMW as fresh as they come thanks to the local BMW factory in South Carolina, which is the only global producer of various BMW X Series models.
The number of BMW employees in South Carolina.
the sum of all South Carolina output that can be directly or indirectly (in terms of dollars) attributable to BMW. 30,777 jobs are supported by the production of BMW vehicles in South Carolina.
What models of BMW are produced in Greenville, South Carolina?
The BMW Group’s first comprehensive manufacturing site outside of Germany is called BMW Manufacturing, and it is situated in Spartanburg County, South Carolina. On September 8, 1994, Associates created the first BMW 318i made in South Carolina. Since then, the factory, which employs 11,000 people onsite, has produced more than 5 million BMWs.
The BMW X3, X5, and X7 Sports Activity Vehicles, as well as the BMW X4 and X6 Sports Activity Coupes, are currently produced globally by BMW Manufacturing. The factory also creates plug-in hybrid and Motorsport versions of many X models. Throughout 140 markets around the world receive nearly 70% of these automobiles for export. More than $10.6 billion has been invested in the Spartanburg site by the BMW Group.