BMW — Bayerische Motoren Werke AG (OTC:BMWKY) is "here for the long game" in the United States as it completes a $1.7 billion investment in South Carolina and prepares to build fully electric vehicles at its largest plant, BMW of North America CEO Sebastian Mackensen said.
BMW Turns South Carolina Investment Into Reality
Mackensen, president and CEO of BMW of North America, told Fox Business on Monday that the investment marks a major milestone in the German automaker’s U.S. manufacturing strategy and shows BMW is doing more than making announcements.
"One thing is to announce an investment and another one is to actually do the investment, implement it, [and] build the expansion of this facility," Mackensen said.
The expansion, first announced in 2022, includes a $1 billion upgrade at BMW’s Plant Spartanburg and a $700 million battery assembly facility in nearby Woodruff, South Carolina. BMW had framed the investment as part of its broader U.S. electrification push.
Electric X5 Anchors BMW’s U.S. EV Push
BMW also unveiled the all-new X5 at Plant Spartanburg on June 30. The company said the iX5, the first battery-electric BMW X5, will become the first fully electric BMW assembled in the U.S. when production begins before the end of 2026.
The iX5 is expected to be the first of several electric models built in South Carolina. BMW says at least five additional fully electric models will be assembled in the U.S. by 2030.
The move comes as several automakers have slowed or cut EV plans amid tougher demand, pricing pressure and policy shifts. Reuters reported in March that global carmakers had booked more than $70 billion in writedowns over EV rollbacks.
BMW says it will stay the course. "We are convinced that the EV is a relevant and here-to-stay drivetrain option," Mackensen said. He added that EVs may not make up the majority of U.S. sales soon, but BMW also exports vehicles from South Carolina to global markets. Plant Spartanburg, established more than three decades ago, currently builds BMW models, including the X3, X6, X7, and XM for U.S. and international buyers.
BMW Says US Manufacturing Strengthens Global Reach
Mackensen said the U.S. is BMW’s second-largest market by volume and remains central to the company’s plans. "It shows our clear commitment to the U.S. market," he said. "It makes a lot of sense to assemble your cars where your customers are."
BMW said Plant Spartanburg has made it the largest automotive exporter from the U.S. by value for more than a decade, exporting nearly 3 million vehicles worth $113 billion from 2014 through 2025.
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