BMW is committed to a “long game” in the United States, as evidenced by the completion of its $1.7 billion expansion in South Carolina and the upcoming production of fully electric vehicles at its largest plant. Sebastian Mackensen, president and CEO of BMW of North America, emphasized that the investment signifies a crucial step in the automaker’s U.S. manufacturing strategy, demonstrating tangible action beyond mere 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 stated in a discussion with FOX Business.
The significant investment, initially revealed in 2022, comprises a $1 billion upgrade to BMW’s Plant Spartanburg and an additional $700 million for a battery assembly facility in Woodruff, South Carolina. As part of this initiative, BMW unveiled the all-new iX5, the first battery-electric version of its popular X5 model. Production is slated to begin by the end of the year, marking the first fully electric BMW to be assembled in the U.S.
The iX5 is expected to be the first of several electric models to be manufactured in South Carolina, with at least five additional fully electric BMW models planned for U.S. assembly by 2030.
This strategic move positions BMW against a backdrop where some automakers are re-evaluating or postponing their electric vehicle plans. Mackensen expressed confidence in the enduring relevance of electric drivetrains, acknowledging that while they may not dominate the U.S. market in the immediate future, they are a vital component of the company’s global strategy, especially given that the Spartanburg plant exports vehicles worldwide.
Plant Spartanburg, established over three decades ago, currently produces BMW models such as the X3, X6, X7, and XM for both domestic and international markets. Mackensen noted that BMW’s growth in South Carolina has also spurred economic development, attracting suppliers and related businesses to the region.
“It has really had a changing impact on the whole community, not only in Greenville [and] Spartanburg, but also for the entire state,” Mackensen remarked.
The U.S. remains BMW’s second-largest market globally, and its strategic importance is underscored by this substantial investment. “It shows our clear commitment to the U.S. market,” Mackensen said. “It makes a lot of sense to assemble your cars where your customers are.”
BMW has consistently been the largest automotive exporter from the U.S. by value for over a decade, with nearly 3 million vehicles, valued at over $113 billion, exported between 2014 and 2025.
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