7 hours ago
BMW to build 3 new models in the US
BMW has confirmed plans to invest $1.7 billion in the US to build vehicles for the future. The German luxury brand is sticking with two massive expenditures: $1 billion to upgrade its existing Spartanburg, South Carolina, factory and another $700 million to build a nearby battery plant in Woodruff.
BMW first announced the $1.7 billion investment in 2022 . But last week, the company confirmed the plan is still on track — despite criticism from Trump officials in April 2025, ongoing tariff pressures, and current supply chain disruptions. The two investments will support production of BMW's upcoming flagship electric SUVs — dubbed the iX5 and iX7 — which will start rolling out of the plant in 2026 and 2028.
The company hasn't released detailed pricing or range expectations for either vehicle, but it's promising a major leap in performance. Both SUVs will incorporate BMW's next-generation electric technology, which boasts up to 30 percent more range and 40 percent less energy loss than current models. High-performance trims of the SUV will have over 800 horsepower, more than triple the output of the average American car.
For BMW, the commitment to the American South has been decades in the making. The company opened its South Carolina plant in 1994 and currently builds eight SUV models there. But three decades of US investment haven't translated to goodwill in the White House.
In March, President Donald Trump imposed a 25 percent tariff on all imported cars and vehicle parts — a policy that could hit BMW particularly hard, since many of its engine components are still produced in Germany. Consumers are just starting to see vehicle prices increase because of the tariffs. Insurify , a digital insurance agency, published a study that predicts BMW's models will receive a 19 percent price increase in 2025 because of the President's policy, the fourth highest among all US automakers.
Then, a month later, Trump officials called out BMW's business model by name. In April, White House Trade Advisor Peter Navarro criticized the company for assembling vehicles in South Carolina using imported parts. 'This business model where BMW and Mercedes come in to Spartanburg, South Carolina, and have us assemble German engines and Austrian transmissions, that doesn't work for America,' Navarro said.
'It's bad for our economics. It's bad for our national security. We want them to come here.' BMW's press team immediately pushed back, noting the company's long-standing investment in the region's economy. 'We export more vehicles from the United States than we import into the country,' the company responded in a statement.
'Plant Spartanburg generates a total economic impact of $26.7 billion for our state, supporting nearly 43,000 jobs and $3.1 billion in wages and salaries.' Last week, despite the months-long drama, BMW confirmed to Ward's Auto that the 2022 EV investment is moving forward. BMW did not immediately respond to request for comment on the investments.
Still, automakers are currently facing an uphill battle to build cars in the US: present trade tensions with China have created parts shortages that could throttle American factories. China has begun withholding exports of key magnets used in vehicle brakes, windshields, and microchips. The country currently produces over 90 percent of the world's supply of these parts.
Industry leaders sent a letter to President Trump in May, warning that the Chinese response could stop US vehicle production for weeks. 'China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,' Trump said in a late May post on Truth Social about the magnet withholding. American and Chinese leaders are negotiating a trade deal in London today .
