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Posts Tagged ‘BMW Spartanburg’

X-Files: BMW Expected to Add X7 to Product Line-up

Maker needs to expand S.C. plant to build SUV.

by on Mar.25, 2014

BMW is hosting an event at its Spartanburg, S.C. plant later this week where, it's rumored, it will announce plans to build the long-awaited X7 SUV.

BMW is hosting an event this week at its Spartanburg, S.C. plant where the German luxury maker is expected to announce it will build the long-awaited X7 at the plant.

The X7, a large, three-row SUV, has been in and out of BMW’s product plans over the past couple of years. However, with the popularity of other large, full-size luxury SUVs on the rise, BMW executives appear to have given the project a green light.

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The X7 would be the fifth SUV built in the Spartanburg plant. The plant now builds the X3, X4, X5 and X6 in the Spartanburg plant, which is now undergoing an expansion that will push the plant’s capacity from approximately 300,000 units annually to 350,000 units. Roughly, half the production from the Spartanburg plant is now exported to BMW dealers in an estimated 130 countries around the world. (more…)

Big Expansion at BMW, Daimler Plants in Carolinas

Spartanburg set to become BMW’s second-largest line.

by on Jan.13, 2012

The BMW plant in Spartanburg will undergo yet another expansion - and get the new X4.

The U.S. auto industry continues to be one of the drivers of the American job market – in this case, thanks to German manufacturers BMW and Daimler AG.

The two plan to add more than 1,500 jobs at factories in the Carolinas, the expansion at BMW potentially making its factory in Spartanburg, South Carolina its second-largest.  It is already this country’s largest exporter of automotive products to markets outside of the NAFTA region.

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Daimler Trucks North America announced the addition of a second shift and plans to ramp up production at its Freightliner Truck Manufacturing Plant in Cleveland, North Carolina, creating more than 1,100 new jobs by the end of 2012. The additional workers represent a 72% increase in personnel at the plant and will include approximately 1,072 shop employees and an additional 29 engineering and support positions, the company said in statement.

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BMW Reaches Temporary Accord with Teamsters

Maker agrees not to replace long-time workers with low-cost contractors.

by on Aug.12, 2011

Teamsters demonstrating at a California dealership before the maker agreed not to replace union workers with low-cost contract employees.

BMW has bowed to union pressure and agreed to extend for six months the contract at its parts distribution facility in Ontario, Calif.  The maker had planned to fire 68 Teamster workers and replace them with non-union contract employees.

BMW management also committed to work with the Teamsters during this period to reach a mutually acceptable solution that addresses long-term employment for the current workforce at the warehouse in California, according to the union.

Teamsters Local 495 represents 68 workers at the Ontario parts distribution facility. BMW had planned to fire all its Ontario-based employees at the end of August, and immediately re-open the facility with an outsourced, low-paid managerial, clerical and warehouse work force.

Insight!

“This agreement shows what Teamsters can do when we stand together and fight back,” said Teamsters General President Jim Hoffa. “Teamsters across the country, and unions that represent BMW and supply-chain workers across the globe, took part in numerous solidarity actions this summer in support of these workers. I am hopeful that the contract extension signals a new path for BMW and the Teamsters.”

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BMW Was #1 Auto Exporter – Again

Maker shipped over $4 billion in vehicles outside NAFTA region.

by on Feb.17, 2011

a sizable portion of the BMW X3 models produced in Spartanburg are earmarked for export.

While domestic automakers may be talking about increasing their automotive exports, BMW is practicing what it preaches.

The maker, which recently focused on its U.S. manufacturing base in a Super Bowl commercial, was once again the biggest exporter of automobiles to markets outside North America, according to the U.S. Department of Commerce.

“BMW vehicles manufactured in South Carolina were a major contributor to the company’s success in 2010,” said Josef Kerscher, president of BMW Manufacturing Co. “Consistently strong, global demand for the X5 and X6, and now the all-new X3 to global markets, has led to a net increase in our export volume.

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All told, the maker’s single U.S. assembly plant, in Spartanburg, South Carolina, produced 110,000 vehicles for shipment outside the NAFTA region, worth $4.42 billion.

The plant, which went into operation in 1994, has so far produced 1.7 million vehicles, with about 70% of the X3 and X5 Sport-Activity Vehicles built there earmarked for export.

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BMW Boosts Production at Spartanburg Plant – And Further Growth Could Follow

Key to corporate goal of boosting sales 55% by 2020.

by on Oct.21, 2010

BMW may have further growth plans for the newly-expanded assembly line in Spartanburg.

It may be a “German” automaker, but BMW is counting on its assembly plant in Spartanburg, South Carolina, to help drive its goal of increasing sales by 55% before the end of the coming decade.

And to get there, the maker is pumping an extra $750 million to expand the factory, known internally as plant 10, which has become its critical source for multipurpose vehicles like the X5 and the newly-updated X3.

“We will continue to invest” in Spartanburg, proclaimed BMW’s chief Nortbert Reithofer, who was present at a ceremony to celebrate the completion of the newly-expanded factory.

Though “plant 10” has produced a wide range of products since it first opened, nearly two decades ago, it today focuses on BMW’s so-called “sport-activity vehicles.”  And for good reason, considering the huge demand for such products in the States.  But sales are growing worldwide, making the Spartanburg plant today one of the biggest exporters – on a dollar basis – of any factory in the U.S.

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A full 70% of the vehicles produced in the South Carolina facility are exported.

Building demand with new models, such as the revised 2011 X3 is critical if BMW is to achieve the projects sales growth of 55% — to a total of 2 million vehicles per year — by 2020.

But Spartanburg alone won’t be able to handle that hefty increase, and Reithofer said that BMW needs to build an all-new plant, though he declined to name a location. Last April, on the eve of the Beijing Motor Show, he said that the X1 could be one of the models to be produced at the company’snew Chinese plant in Tiexi, in Shenyang province.

“Together with the Chinese authorities we are investigating the possibilities,” said Reithofer, adding that, the investment will be 560 million euro, half on the account of BMW and the other half on the account of its Chinese partner, Brilliance. The yearly capacity of the Tiexi plant is planned to be around 100,000 units in 2012.

The company started production in Spartanburg in 1994 with the 3-Series, followed by the Z3 and Z4. Since 1999 BMW has been using the factory to assemble the X5, and since 2008 the X6.

In the past sixteen years the plant produced more than 1.6 million vehicles overall. With the new extension the yearly capacity can be cranked up from 160,000 to 240,000 units.

The 1.2 million square-foot expansion includes a body shop, assembly hall and paint shop.

BMW started production of the second generation of the 2011 X3 in September. Approximately 1,600 extra jobs were opened up, in addition to the existing 6,000 employees. An external report states that directly and indirectly BMW generates 23,000 jobs in South Carolina.

BMW has been emphasizing the environmental friendliness of its American plant.  In Spartanburg the new paint shop uses the so-called IPP, or Integrated Paint Process, an electronically-managed system that eliminates several traditional steps, leading to a 30% decrease of energy usage and, consequently, to a 45% reduction in CO2-emissions.  That, the maker claims, is a savings of 92,000 tons per year.

Methane gas from a nearby landfill powers around half of the energy needs of the plant. Total savings amount to around $5 million per year.

The extension should allow BMW to remain the number one European premium brand on the U.S. market, it contends. But its German competitors, especially Mercedes-Benz, are closing the gap.

The second generation of the X3 will probably be joined by yet another model line. During the celebration in Spartanburg, Jim O’Donnell, president of BMW North America, said that BMW will introduce its small X1 model in this market in the first half of 2011.

Frank-Peter Arndt, BMW Group board member,  denied later that evening, the existence of such plans.

BMW’s philosophy is to build a model line in the country where it is best sold. With respect to the X3 the US market is good for 50% of worldwide sales.

The German newspaper Handelsblatt reported a day after the ceremony that BMW is considering building the 3-Series passenger car model in the US. It will be financially easier to compete with the C-Class that is produced in the Mercedes plant in Tuscaloosa, Alabama.