After attracting some dubious criticism regarding its US-based production, BMW fired back with some cold, rational stats that solidified its reputation as an exporter and manufacturer. But apparently, the automaker wasn’t content to stop there. Perhaps fueled by indignation—but more likely demand and forecasting—BMW is mulling over the addition of shifts at its Spartanburg plant. Apparently, the boosted productivity could result in up to 80,000 additional units entering production.
Anticipating the Year Ahead
Reportedly, BMW’s US inventory is sitting around a month’s days supply. A primary benefit of the production increase is price protection. A ramp up ensures models that are made in the US—mostly X models, like the X3 and X5—retain current pricing until at least the end of May. Associated parts will feel the benefit, too. It’s just one creative way the automaker can work around the Trump administration tariffs that may otherwise severely impact customer pricing both US and abroad.
It’s also important to note that a portion of these 80,000 units would also be leaving the country. After all, Spartanburg, SC, is responsible for global SUV production. In fact, BMW is the largest vehicle exporter in the country by value, exporting over $10 billion in vehicles just last year. The fact that Plant Spartanburg is located in a free-trade zone helps alleviate stress from both US tariffs and tariffs in other countries.
Otherwise, costs would be mounting even quicker as a trade war continues to rage. A free-trade zone, or FTZ, acts as a holding area for imported goods to be re-exported. Here, goods are allowed to be repackaged and exported without the heavy tariffs associated with normal imports and exports. In BMW’s case, that primarily impacts components from Austria, like engines. Spartanburg, South Carolina, is the second largest FTZ in the nation as of 2024.
BMW looks forward to a year that could be full of constant pressure. So, it makes sense for the automaker to explore every possible avenue. A global, trade-heavy economy is perhaps more critical to BMW than any other automaker. After all, it has exported over $100 billion of product just in the last decade. Despite some misguided comments surrounding their Spartanburg manufacturing, it’s clear that BMW brings a lot of value to the US at large and South Carolina specifically, and has no intention of shaking things up if it can avoid it.
Source: Reuters