South Carolina Department of Commerce Seeks Approval of $103.5 Million Incentive Package for BMW Manufacturing

COLUMBIA, S.C. - 12/02/2003

The South Carolina Department of Commerce will ask the South Carolina Joint Bond Review Committee Wednesday to approve a $103.5 million incentive package for Upstate-based BMW Manufacturing Corp.

The incentive package is based on BMW’s announcement in September 2002 to invest an additional $400 million and create an additional 400 jobs. South Carolina law provides that the state may expend capital money on specific infrastructure needs, such as road and rail improvements, research and development facilities and equipment, training facilities and equipment, land acquisition, and site preparations to companies that agree to invest at least $400 million and create at least 400 new jobs.

By law, the Joint Bond Review Committee and the South Carolina Budget and Control Board must approve the department’s request before funding is released.

If approved, the $103.5 million would be allocated as follows:

  • $40 million for I-85 interchange improvements at Brockman-McClimon Rd. to accommodate future production capacity increases.
  • $25 million for a Graduate Engineering Center that will be operational in 2006 and $1.5 million for associated land cost.
  • Research projects:
  • $15 million for the construction of the BMW Information Technology Research Center to be located in the Clemson International Center for Automotive Research park. The information technology research center will support strategic research to develop information technology for automotive applications with a series of IT partners.
  • $16.9 million into a Development Center/Testing Facility on the BMW Manufacturing grounds that will electronically link the production facilities with BMW’s North American suppliers, and provide pre-production testing of supplier components to increase the American content of U.S.-made BMW vehicles.
  • $3.8 million to purchase 55-acres adjacent to the BMW site on I-85 for future use.
  • $1.3 million in site preparation such as perimeter roads and improvements to Highway 101.

BMW Manufacturing has invested more than $2.5 billion in its South Carolina operations, employs about 4,700 and is the sole manufacturer of Z4 roadsters and X5 sports activity vehicles for the world market. The factory’s North American supplier network includes 138 companies from Canada to Mexico to California.

Thirty-nine BMW suppliers are now located in South Carolina within a few hours drive of the Spartanburg County plant, creating nearly 7,200 jobs. Thirty-one of those companies chose to place new North American operations in South Carolina to partner with BMW.

BMW Manufacturing is a subsidiary of the BMW Group based in Munich, Germany. Its website address is www.bmwusfactory.com. In addition to the South Carolina manufacturing facility, BMW’s North American subsidiaries include sales, marketing and financial services operations in the United States, Canada and throughout Latin America, and a design firm in California.

Production Figures

  • 2013 Annual Production
    Total 2013 Production: 297,326
  • 2014 Production - February
    X3 Units: 12,892
    X5 Units: 12,200
    X6 Units: 2,089
  • Number of jobs – 8,000
  • North American suppliers –
    170
  • South Carolina suppliers –
    40

Media Contacts

Sky Foster
MANAGER, CORPORATE COMMUNICATIONS

BMW Manufacturing Co.
P. O. Box 11000
Spartanburg, SC 29304
864-989-5546
Sky.foster@bmwmc.com

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