BMW is intensifying its footprint in the United States by committing to build the latest generation of its X5 SUV in Spartanburg, South Carolina, where a recent $1.7 billion factory upgrade has modernized production facilities. This follows a strong track record at this plant, which has produced over 7.3 million vehicles since 1994 and remains the leading US automotive exporter by value.
The fifth-generation X5 is positioned to offer unprecedented drivetrain versatility, reflecting BMW's “technology open” philosophy. Buyers will have the choice of five different powertrains: traditional gasoline or diesel engines, 48-volt mild hybrids, plug-in hybrids, fully electric battery systems, and a planned hydrogen fuel cell option. This approach contrasts sharply with many automakers’ retreat from electric vehicles, instead allowing BMW to adapt to varying market demands while advancing electrification.
Spartanburg’s facility is crucial not only for BMW’s US strategy but also for its global operations. Nearly half of the vehicles produced in Spartanburg are shipped to approximately 120 countries, underscoring BMW’s role as the largest US vehicle exporter by value. The operation supports over 120,000 jobs across its 30 US sites and suppliers in a dozen states, contributing more than $43 billion annually to the American economy.
BMW’s decision to expand electric vehicle production in the US runs counter to existing headwinds faced by EV adoption domestically. Import tariffs have historically challenged foreign manufacturers in the US, but BMW leverages its local production and export capacity to maintain competitiveness, especially against rivals like Mercedes, which builds more vehicles primarily for the domestic market.
At a recent company event, BMW’s board chairman highlighted the group’s firm commitment to US operations, framing the Spartanburg upgrades and diverse powertrain availability as a demonstration of confidence in the market and a reinforcement of South Carolina’s central role in BMW’s global supply chain.