BMW completes $1.7bn US investment, unveils new X5 with industry-first five-drivetrain lineup
Spartanburg, SC — BMW Group has marked a significant milestone in its American operations, completing a $1.7 billion investment in its South Carolina manufacturing facilities while simultaneously unveiling the fifth-generation BMW X5 — the industry's first model to be offered with five distinct drivetrain options.
The announcement was made at the "Home of X" event in Spartanburg on Tuesday, where newly appointed BMW Group Chairman of the Board of Management Milan Nedeljković presided over his first major product launch since taking the helm.
"Completion of our investments in Spartanburg and Woodruff demonstrates our confidence in the United States and reinforces South Carolina's role at the center of BMW Group's global operations," Nedeljković said in a statement.
The new BMW X5 enters its fifth generation combining Neue Klasse design language and innovations with an unprecedented breadth of powertrain choices. The SUV will be available with petrol, diesel, plug-in hybrid, mild-hybrid, and fully electric drivetrains — a first for any single vehicle from a global automaker.
Central to the announcement is the confirmation of the BMW iX5, the first fully electric BMW to be assembled in the United States. Production of the iX5 is scheduled to begin at the Spartanburg plant in late 2026, marking a pivotal step in BMW's electrification strategy for the North American market.
Dr. Robert Engelhorn, President and CEO of BMW Manufacturing, joined Nedeljković alongside U.S. Senator Lindsey Graham and South Carolina Governor Henry McMaster at the event.
The investment — spanning both the existing Spartanburg plant and the new Woodruff facility — positions South Carolina as a central hub for BMW's global production network. By 2030, the BMW Group plans to assemble at least six fully electric models in the United States.
Both Spartanburg and Woodruff plants are being built around the principles of BMW iFACTORY, the company's production system focused on digitalization, sustainability, and flexibility. The facilities incorporate advanced artificial intelligence applications, virtualization technologies, and efficient resource management systems.
BMW Group's Plant Spartanburg, which opened in 1994, is the company's largest plant worldwide by production volume and has long been the heart of BMW's X-model production for the global market. The new investments ensure the facility remains competitive as the industry transitions toward electrified mobility.
Source: BMW Group PressClub
