BMW Announces South Carolina Plant Expansion
12 May 1998
BMW Announces $600 Million South Carolina Plant Expansion; Expanded Facility to Produce New 'Sports Activity Vehicle'
SPARTANBURG, S.C., May 12 -- BMW announced today that it will
invest an additional $600 million and add 1,000 associates to its South
Carolina manufacturing facility over the next two years. The expanded
facility, which will increase in size by close to one million square feet,
will be the sole manufacturing plant for the "Sports Activity Vehicle"
announced earlier this year.
When the plant expansion is complete in the year 2000, BMW's South
Carolina investment will total more than $1.2 billion with employment at more
than 3,000 associates. The facility will expand to more than 2.1 million
square feet from the current 1.2 million. It is anticipated that up to 5 new
automotive supplier companies are expected to locate in South Carolina.
Since 1993, 22 supplier companies have located in South Carolina to
partner with BMW. Together with the new suppliers expected by the year 2000,
total South Carolina supplier job creation is estimated to reach more than
2,500 new jobs and bring total supplier investment in the state to nearly $425
million.
By the end of the year 2000, the combined investments of BMW and its
suppliers should reach at least $1.6 billion, creating more than 5,500 jobs in
South Carolina.
Across North America, BMW has established a network of about 100 supplier
plants, purchasing about $1 billion in goods and services in 1997. Nearly
half, or about $500 million, was purchased from some 500 South Carolina
companies.
"BMW South Carolina has proven that it could exceed the expectations of
our customers, our company and of the industry," said Norbert Reithofer,
president of BMW Manufacturing Corp. "Now the time has come to expand our
capabilities in all areas of our operations, to increase our production
capacity while continuing to improve our current high quality. Further, we
must continue to develop the skills and competencies of every member of our
team to better prepare them and our plant for the challenges ahead."
The new plant configuration will result in a markedly higher production
capacity and one of the most flexible manufacturing bases in operation today.
The body and assembly departments are being enlarged to make room for an
additional production line in each area, increasing flexibility and efficiency
for multiple model production.
An expansion of the engineering capabilities of the South Carolina
operation will require the construction of a 60,000-square-foot analysis
center adjacent to the manufacturing complex. The new center will give the
Spartanburg engineering team the ability to expand testing and quality
assurance systems. This new center will provide the capability to better
integrate the engineering and manufacturing functions. The facility includes
testing laboratories for electrical analysis, endurance and reliability, noise
reduction, and road simulation.
"This new project is a resounding statement to the world about the quality
of the South Carolina workforce," said Governor David Beasley. "South
Carolina is rapidly becoming the world's most international business address
because our workers have the skills to compete and the pride to succeed. BMW
recognized these characteristics in 1992 and now are doubling their investment
in our future and theirs."
Another First for Spartanburg
As in 1996 when the South Carolina facility became the exclusive
manufacturing plant for the exciting new Z3 roadster, BMW will produce its
entirely new concept, the recently announced Sports Activity Vehicle, in the
United States for worldwide distribution.
"We don't see much 'sport' in the 'sport utility vehicle' segment of
today," commented Henrich Heitmann, CEO of BMW (US) Holding Corp. "As the
creators of the first sports sedan some 30 years ago, BMW is uniquely suited
to inject some driving excitement into this market. Our Sports Activity
Vehicle will combine the responsive performance of a BMW sports sedan with the
roominess, flexibility and all-weather capability of an SUV. And because this
is not a truck-based concept, but rather based on its own unique platform, our
vehicle will be unlike anything available today. Above all, this will be a
BMW, through and through."
Fastest Start-Up in Automotive History
The South Carolina plant made automotive industry history when
construction and production start-up was accomplished in just 23 months.
Construction began in April 1993 and the first American-made BMWs, the
318i sedan, were shipped to customers in March 1995. Later in 1995, the plant
added the 328i sedan to its production line, and then, just in time for James
Bond, production of the all new four-cylinder Z3 roadster began before year-
end.
Demonstrating the flexibility of its international production network, BMW
shifted 3-Series production from the South Carolina plant to the Regensburg,
Germany plant in August 1996 to increase the daily build-rate for the
Z3 roadster to meet the increasing world demand of the popular two-seater.
In 1996, only its second year of full operation, the South Carolina plant
produced 50,278 cars -- a mixture of 46,097 roadsters and 4,181 3-Series
sedans. In 1997, the Spartanburg County plant produced 61,014 roadsters.
Through March 1998, the South Carolina plant has produced a total of
122,131 roadsters. As an international plant, the BMW Manufacturing Corp. has
exported 81,390 roadster to the world, valued at $1.43 billion, representing
66 percent of total production. The South Carolina plant is the sole source
for Z3 roadsters, which has captured one-third of the world market for popular
two-seaters. The plant produces four- and six-cylinder, left- and right-hand
drive roadsters and, later this year, coupes. The S.C. plant also produces
the exciting Motorsport, or M brand, versions - the M roadster and the soon-
to-be introduced M coupe.
BMW Manufacturing Corp. is a subsidiary of BMW AG, Munich, and is one of
15 worldwide factories in the BMW Group, which includes Rover, Land Rover and
MG products. In addition to the South Carolina manufacturing facility, BMW's
North American subsidiaries include the Brand Headquarters in Woodcliff Lake,
N.J.; sales and marketing, and financial operations in both the United States
and Canada; a production facility in Mexico, a design firm in California; and
Land Rover sales and marketing companies.
SOURCE BMW of North America, Inc.
