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A look back on BMW, South Carolina and Southern manufacturing

It has been 20 years since BMW broke ground on its Spartanburg, SC manufacturing facility, and while the automaker doesn't have any plans to mark the moment, economists and industry analysts have taken a closer look at the facility's impact on South Carolina, the South and global manufacturing. As of November, the Spartanburg plant's 7,000 employees cranked out 25,000 vehicles per month, and BMW has poured some $6 billion into the state since the plant opened in 1993. While that figure nearly matches the state's proposed budget for next year, some say there have been drawbacks.
To begin with, South Carolina provided BMW with hundreds of millions of dollars worth of public money and tax breaks with little public oversight, setting a precedent that would repeat itself with other corporations. The Detroit News reports that a Pew Center evaluation found 26 states didn't have a sufficient system for evaluating tax incentive performance. But BMW opened the door for a Southern manufacturing renaissance, with automakers from Mercedes-Benz to Hyundai and Volkswagen opening plants in the Deep South.
While states have raced to offer ever sweeter tax and cash incentives for big manufacturers, officials say BMW is proof the system can pay dividends. You can read the full piece here.

BMW confirms new Mexican plant

After over a year of speculation, BMW is finally officially announcing that it's building a factory in Mexico. The new plant will cost the German automaker roughly $1 billion US and will have a capacity of about 150,000 vehicles a year when complete. However, production won't begin there until 2019.
The new factory is being built near the city of San Luis Potosí, Mexico, with plans to employ about 1,500 people. Unfortunately, BMW is still mum about which models it's producing south of the border. Earlier rumors indicated the possibility of the 3 Series, 1 Series and maybe even Mini models there.
BMW says Mexico's multiple free trade agreements are a major factor in the choice of location of the plant. They make it possible for the automaker to ship models more cheaply to North America, parts of South America and the European Union. "The Americas are among the most important growth markets for the BMW Group. We are continuing our strategy of 'production follows the market,'" said Harald Krueger, the board's head of production, in the company's official announcement.

X4 launch to spearhead BMW crossover onslaught at NY Auto Show

It's no secret that crossovers are one of the key vehicle types driving today's auto industry profits, and nowhere is that more true than among the world's luxury brands. BMW became one of the first players in the luxury CUV segment when it launched its original X5 in 1999, and buoyed by that model's runaway success, it followed up with the X3 in 2003, the X6 in 2008 and the X1 in 2009 (though the latter didn't make it to the US until late 2012). It's replaced the X5 twice since then and the X3 once, but the Bavarian automaker isn't about to let matters rest there.
First off, a production version of a new X4 model is expected at the New York Auto Show in April. The model was previously rumored to be earmarked for reveal a month earlier, but a new report from Autocar suggests that the previously mooted reveal date and location were inaccurate. The X4 is expected to apply the same controversial slant-back formula to the X3 that transformed the X5 into the X6, which will in turn lead to an update for the X3 as well.
But that's not all. Autocar also reports that before 2014 is out, BMW will unveil a revised X6 at the Moscow Motor Show in August, which will in turn be followed by upgraded versions of both the X6 M and X5 M. These high-performance crossovers are tipped to pack the same 4.4-liter twin-turbo V8 as the outgoing versions, albeit with higher outputs than the current models' 555 horsepower and 500 pound-feet of torque. All this, and they're still expected to simultaneously improve fuel consumption and emissions figures.