BMW Group Completes $1.7 Billion U.S. Investment and Premieres New BMW X5 at “Home of X” Event in Spartanburg, SC
Spartanburg, South Carolina. The BMW Group announced
today the completion of a $1.7 billion investment in its South
Carolina operations. The company celebrated the milestone at the
“Home of X” event at BMW Group Plant Spartanburg,
reaffirming its longstanding commitment in the United States through
continued investment and innovation leadership. With this milestone,
BMW Group has completed the expansion of Plant Spartanburg and the
construction of Plant Woodruff, establishing the foundation for the
assembly of fully electric BMW vehicles in South Carolina. The United
States remains one of BMW Group’s most important markets and business
ecosystems worldwide.
The event also marked the world premiere of the new, fifth-generation
BMW X5. BMW confirmed that the BMW iX5 will be the first fully
electric BMW assembled in the United States, starting in late 2026.
“When we announced our investment plans for South Carolina in
2022, we made a clear commitment to the future of the BMW Group in the
United States,” said Milan Nedeljković, Chairman of the Board of
Management, BMW AG. “Today, we are delivering on that commitment.
The completion of our investments in Plant Spartanburg and Plant
Woodruff demonstrates our confidence in the United States and
reinforces South Carolina’s role at the center of BMW Group’s global operations.”
Together, Plant Spartanburg and Plant Woodruff form a highly
integrated network supporting the future of BMW X model assembly and
electrification in the United States.
Home of X.
Home of X recognizes the significant role the United States plays in
BMW Group’s global operations. South Carolina is the home of BMW
Group’s largest plant worldwide. For more than 50 years, BMW has
maintained a strong commitment in the United States, growing its
presence to nearly 30 locations across 12 states. Today, BMW Group’s
business activities in the U.S. support more than 120,000 jobs
nationwide and contribute more than $43.3 billion annually to the U.S. economy.
Established more than three decades ago, BMW Group Plant Spartanburg
is the global center of competence for BMW X models. Since 1994, more
than 7.3 million BMW vehicles have been assembled in South Carolina
for customers in the United States and around the world. In 2025,
412,799 BMW X models were assembled at Plant Spartanburg – this marked
the seventh time the plant has exceeded 400,000 units.
Approximately half of the plant’s current production is exported to
nearly 120 countries, helping to make BMW the leading automotive
exporter in the United States by value. To date, nearly 3 million BMWs
have been exported from the United States, valued at over $113 billion.
The completion of BMW Group’s $1.7 billion investment in South
Carolina represents the latest chapter in the company’s longstanding
commitment in the United States. Together, Plant Spartanburg and Plant
Woodruff will enable the assembly of the next generation of BMW X
vehicles, including fully electric models, while strengthening BMW
Group’s ability to serve customers around the world.
With two plants, over 400 suppliers, and many longstanding strategic
partners across the country, the United States remains central to BMW
Group’s global strategy. This foundation supports future growth,
innovation, electrification, and customer choice for decades to come.
New BMW X5 Available in Five Drivetrains.
A centerpiece of the Home of X celebration was the world premiere of
the new BMW X5. The X5 established the premium Sports Utility Vehicle
segment and became one of the most successful products in BMW history.
Since 1999, over 3 million BMW X5 models have been sold around the
world, a third of which were sold in the U.S.
Assembled at Plant Spartanburg for over 25 years, the new BMW X5
becomes the first vehicle offered with five drivetrain technologies.
The options span internal combustion, battery electric, plug-in hybrid
electric, diesel and, soon, fuel cell electric powered by hydrogen.
This breadth reflects BMW Group’s technology-open approach and
commitment to customer choice.
“Our strategic course remains unchanged. We will continue to
pursue the same technology-open strategy that has made BMW successful
and will continue to make us successful in the future,” continued Nedeljković.
Plant Spartanburg will be the first plant in the BMW Group’s global
production network capable of assembling a single vehicle with five
different drivetrain technologies on one assembly line, demonstrating
the technology-open strategy at the highest level.
By offering a broad range of drivetrain technologies, BMW enables
customers to select the vehicle that best suits their needs, driving
habits, and preferences. This flexibility reflects BMW Group’s
conviction that multiple technologies will play an important role in
the transition to sustainable mobility.
“The new BMW X5 demonstrates our belief that innovation and
customer choice go hand in hand,” said Sebastian Mackensen,
President & CEO, BMW of North America. “Our customers both in
the U.S. and around the world will love the new BMW X5 – and our
technology-open approach puts them in the driver’s seat to enjoy the
performance and premium experience that define BMW, regardless of
which drivetrain they choose.”
BMW Group also confirmed that the BMW iX5 will be the first fully
electric BMW vehicle assembled in the United States. Assembly is
scheduled to begin at Plant Spartanburg before the end of 2026.
The announcement represents another important milestone in BMW
Group’s electrification strategy. It fulfills a key commitment made as
part of the company’s 2022 investment announcement. By 2030, BMW Group
will assemble at least six fully electric BMW models in the United
States, supported by locally assembled high-voltage batteries from
Plant Woodruff.
“The future of BMW X models will continue to be shaped in South
Carolina,” said Dr. Robert Engelhorn, President & CEO, BMW
Manufacturing Co. “From highly efficient combustion engines and
plug-in hybrid systems to battery-electric and future hydrogen-powered
vehicles, Plant Spartanburg will be able to assemble a broad range of
drivetrain technologies for customers in the U.S. and around the
world. This flexibility of Plant Spartanburg and our global production
network strengthens our resilience, supports customer choice, and
enables us to meet customer demand at any level.”
Digitalization and AI in Production: Key Principles of BMW
iFACTORY are implemented in Plants Spartanburg and Woodruff.
The BMW iFACTORY concept defines the BMW Group’s strategic vision for
the future of its global production network, driven by efficiency,
sustainability, and digitalization. At both Plant Spartanburg and
Plant Woodruff, the guiding principles of the BMW iFACTORY are already
a reality.
Smart automation, end-to-end data integration, and virtual planning
form a highly connected production system — with a highly skilled
workforce at its core. Digital twins allow processes in both plants to
be optimized long before the first component reaches the assembly
line. 3D virtual simulations enable seamless implementation, reduce
complexity, and enhance workflows and ergonomics for associates.
Artificial intelligence is deeply anchored in the assembly of both
plants. AI-supported applications, including self-correcting robotics
and vision-based quality controls, help ensure consistently high
standards in a dynamic manufacturing environment. At both plants, AIQX
(Artificial Intelligence Quality Next), an in-house IT platform at the
BMW Group, is being applied. AIQX uses sensors and camera systems
along the production line to automate quality processes. AI evaluates
the data and provides real-time feedback to employees on the line.
At the same time, Plant Spartanburg is advancing the next stage of
innovation through physical AI. By utilizing humanoid robots from
Figure AI, Plant Spartanburg has become a pioneer of BMW’s Physical AI
Initiative. These applications support associates in physically
demanding and repetitive tasks, enabling greater focus on precision,
craftsmanship, and quality that define every BMW vehicle.
At Plant Woodruff, the BMW Group is deploying intelligent,
next-generation manufacturing powered by cutting-edge technologies —
first proven in virtual environments. Guided by the BMW iFACTORY
principles, the new plant also reduces complexity and sets new
standards in high-voltage battery assembly. Following the
“Cell-to-Pack” principle, the cells are assembled directly into the
housing without the former processes of cell coating and cell module production.
All in all, innovative technologies at both plants support and
protect people. In doing so, digitalization enhances production
performance, resilience, and the flexibility and adaptability needed
to meet the mobility demands of today and tomorrow.
