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BMW to make Spartanburg plant largest in chain

Author: By Matthew Clark

Source: Columbia Regional Business Report

August 4, 2015

During the quarterly call with investors, BMW Aktiengesellschaft Board of Management Chairman Harald Kruger said the company’s plant in the Upstate will continue to expand.

In fact, Kruger told investors the plant “will be the largest plant in our global production network” because BMW is investing $1 billion between 2014 and 2016.

“At that point, Spartanburg will be the largest plant in our global production network,” Kruger said.
Kruger said, by the end of 2016, the Spartanburg facility will have the capacity to produce more than 450,000 vehicles per year.

“The expansion is also a response to the continuing trend towards SUVs,” Kruger said. “At present, the X lineup accounts for almost one in three BMWs sold. With new models such as the X7, we are going to expand our offering ‘made in Spartanburg.’ ”

BMW’s global production network consists of 30 production sites in 14 countries. The company’s production map includes locations in Germany, Great Britain, Austria, the Netherlands, China, India, Spartanburg and a new plant in Brazil.

The company is also launching a new plant in San Luis Potosi, Mexico. Kruger said BMW is investing $1 billion over the “next few years” with the intent of production beginning in 2019. He said the planned capacity for the Mexico facility will be 150,000 units annually.

“We are stepping up our presence in the (North American Free Trade Agreement) region, and Mexico with its numerous bilateral and regional free trade agreements is a location with a particularly promising future,” Kruger said.

The first half of 2015 saw BMW Group set a record with 1.09 million vehicles delivered. Kruger said that, for the first time, the company posted earnings before interest and tax of more than 5 billion euros ($5.5 billion). He added all sectors of the company posted higher-than-forecasted earnings with the group division driving the gains.

“We are taking strategic decisions with a long-term perspective,” Kruger said. “We are aligning our business model to the complex challenges of today and tomorrow. We also continue to invest in the company, in our products and brands, new services and our production sites worldwide.”


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