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By Olaolu Olusina (olaolu.olusina@autoreportafrica.com)
It was a double celebration for the BMW Group, Monday, as the company celebrated the success of its 25-year-old assembly plant in Spartanburg, South Carolina, USA. This came on a day it also unveiled the All-New BMW X3 at an A-Class event with the luxury brand drawing guests and friends from across the world to witness the epochal event. Another milestone, it also turned, as Plant Spartanburg got a promise of a whopping $600million boost for upgrade and expansion at the ceremony.
It was really a success story worth telling as Plant Spartanburg, BMW’s first full production plant outside of Germany, started from a humble beginning in 1992, and later began production in 1994 with only 570 workers, under the motto of “Welcome to the Future”. Today, Plant Spartanburg has over 9,000 staff, with another 1,000 projected for the next one year, as the Plant has grown to become the largest plant in the BMW Group’s worldwide production network.
Welcoming guests, including top BMW executives and U.S Government officials, as well as local and international press, to the ceremony, President and CEO of BMW Manufacturing Co, Knudt Flor, expressed gratitude to all, for twenty-five years of continued support and personal commitment to the plant’s success.
He said: “Each and every one of you here today is important to the United States, the state of South Carolina and to Plant Spartanburg, so I would like to begin by taking a moment to recognise all elected officials. Please be kind enough to stand for us so you may be acknowledged. On behalf of the BMW Group, I would like to thank you for twenty-five years of continued support and personal commitment to this plant’s success. Thank you!
“Governor McMaster, thank you for your continued efforts in promoting this partnership, as many governors – especially the late Governor Carroll Campbell – before you have done. We’d also like to say a special “thank you” to Bobby Hitt, the Secretary of Commerce, who has been instrumental in the tremendous growth of Plant Spartanburg.
“From the BMW Group, I would like to introduce Mr. Harald Krueger, Chairman of the Board of Management, and Mr. Oliver Zipse, Member of the Board of Management, responsible for Production worldwide. We welcome the national and international press, as we celebrate 25 Years Spartanburg and the All-New BMW X3!
“Also, please join me in welcoming our valued dealers and suppliers from the U.S., our managers from Munich, and last, but certainly not least, I am delighted to welcome all of our associates here on site – the heart and soul of Plant Spartanburg!”
He continued his emotion-laden speech by going down the memory lane to explain how it all started at Plant Spartanburg.
His words: “Twenty-five years ago, our company reached a historic agreement with local government to build our first U.S. BMW plant in the great state of South Carolina. It was the start of something very special – a wonderful friendship and a new beginning. As BMW’s Chairman, Mr. Eberhard von Kuenheim, stated back in 1992: “Seldom in the history of our company, has a community extended such a warm welcome to us as here in Spartanburg, in the state of South Carolina, USA. We have felt at home here from the first day on.
“In 1994, Spartanburg began operations with 570 associates, under the motto of “Welcome to the Future”. Today, we are proud to have over 9,000 associates here! Spartanburg has grown to become the largest plant in the BMW Group’s worldwide production network. That, in itself, is a very strong statement about our commitment to South Carolina and to the U.S.
“It is our for our very successful BMW X vehicles. Currently, the plant produces X3, X4, X5 and X6 models, as well as M and hybrid variants. We are looking forward to starting production of the BMW X7 in late 2018. Today, we are delighted to give you an exclusive world premiere of the All-New BMW X3. The BMW X3 is without a doubt, the best vehicle in its segment. More on that shortly!
“Of course, the success story of Plant Spartanburg wouldn’t have been possible without people. People have made and continue to make the difference.
“We are proud of the people who work here – they are highly skilled and dedicated to building premium quality vehicles for our customers. I am proud to be the leader of such an incredible team at such a remarkable time. World class products are built here every single day. It’s thanks to you, our associates that BMW feels very much at home here in Spartanburg, South Carolina.
“We are honored to have so many friends here and immensely proud to call South Carolina “our home away from home”. It is our goal, and our commitment, to remain a strong and reliable partner for our associates, our customers, South Carolina, and the United States.”
Also welcoming guests to the event, Harald Krüger, Chairman of the Board of Management of BMW AG, said: It’s great to be back in Plant Spartanburg again! … We are proud to be responsible for around 70,000 jobs in this great nation – including dealer network and suppliers. The effect of that employment multiplies to a total of more than 120,000 jobs nationwide. This is according to a new study from the Moore School of Business at the University of South Carolina. Furthermore, our purchasing volume in America is now at 5.7 billion US dollars.
“Twenty-five years ago, we made a crucial and forward looking decision. We decided to build our first full production plant outside of Germany in the U.S. – right here, in South Carolina. The BMW Group’s success in America would not be possible without the open arms and warm hearts of the people and elected officials in the great state of South Carolina and the surrounding region.
“Senator Graham, it is an honor to have you with us here today. We greatly appreciate your ongoing support over the years.
“Our relationship with South Carolina has been built upon decades of mutual trust and respect – and goes far beyond just building cars. Governor McMaster, as you have kindly said – we have become part of the very fabric of this great state. And David Britt, we were deeply touched by your words when you said: “BMW is the gift that keeps on giving”.
“I am extremely proud of the highly skilled people who work here for the BMW Group. Their passion for excellence ensures that BMW vehicles built in the U.S. excite and inspire customers all over the world. Some of my fondest memories are from my time here at the plant as a manager. Since then, one thing has never changed – the unique spirit that makes BMW Plant Spartanburg so special: It’s all about People, Performance, Passion and Pride.
“Today, I would like to thank all of our associates here, at Plant Spartanburg, for their strong commitment. You bring this plant to life – with your work, every single day. Thank you for your outstanding dedication! I am sure you all would agree that our associates deserve a round of applause.”
It is worth noting that the BMW Group has invested eight billion US dollars in the production location to date and produced around 3.9 million vehicles since going online on 8 September 1994.
“From 2018 to 2021 we will invest further 600 million US dollars in manufacturing infrastructure for future generations of the BMW X models,” said Harald Krüger. At present, the plant is getting ready for production of the all-new BMW X7, which will be launched onto the market in late 2018.
The BMW Group also produces BMW X models in Spartanburg for the US and global markets. With record production of more than 411,000 units in 2016, Spartanburg is the largest BMW Group plant worldwide. Around 1,400 BMW X3, X4, X5, and X6 vehicles come off the assembly line every working day. Maximum production capacity is 450,000 vehicles per year.
Around 70 percent of the vehicles produced in Spartanburg are exported to more than 140 countries worldwide. According to the US Department of Commerce, the BMW Group is the largest vehicle exporter from the US in terms of monetary value. In 2016, 287,700 BMW vehicles with a total value of more than 10 billion US dollars were exported from Spartanburg: 86 percent were shipped from the Port of Charleston, with the remaining 14 percent dispatched from five other ports in the Southeastern United States.
The BMW Group also has 235 local suppliers in the US. In 2016, 80 percent of the BMW Group’s purchasing volume in the NAFTA area originated in the US. The US is the company’s second-largest purchasing market, after Germany, and accounts for 5.2 billion euros.
Harald Krüger said: “Free trade has made this success story in the US possible. I firmly believe in free trade and open markets. It is essential for global businesses and economies around the world to flourish. We will keep investing in our people and in our business in the US. Therefore, I remain confident that our footprint and commitment will continue to grow not only in the great state of South Carolina but also in the United States in the years to come.”
Currently, the Spartanburg plant employs more than 9,000 people, but “By 2021, we will create further 1,000 jobs,” stated Harald Krüger. “Training and qualifying our associates is key to our future success.”
Training at the plant is based on the German dual apprenticeship training system that combines classroom learning with practical experience. In the past ten years, the BMW Group has invested more than 220 million US dollars in vocational and continued training at its Spartanburg facility, with another 200 million US dollars planned over the next five years. The training programs are run in cooperation with local colleges. The “BMW Scholars” apprenticeship program launched in 2011 is currently preparing around 100 apprentices for their careers within the plant.
According to an independent study of University of South Carolina (Moore School of Business), the nationwide economic impact of BMW Group Plant Spartanburg is 38.5 billion US dollars annually.
KEYWORDS: BMW Group, Global Competence Centre, Plant Spartanburg, South Carolina, USA, All-New BMW X3, Munich, Germany
