BMW Leads US Auto Export Surge with $1.7B Investment in South Carolina for New EVs

SPARTANBURG, SC – Amid ongoing global trade discussions, BMW is doubling down on its commitment to American manufacturing with a massive $1.7 billion investment in South Carolina. The investment will expand its Spartanburg factory and build a new battery facility, positioning the state as a hub for the company’s next-generation electric vehicles, including the all-new iX5 and iX7 electric SUVs.
This major commitment highlights the critical role international automakers play in the U.S. economy, not just as sellers of cars, but as major domestic manufacturers and the nation’s leading exporters.
Key Highlights of US Automotive Investment and Exports:
BMW’s Massive Investment: BMW is investing $1 billion to expand its Spartanburg plant and $700 million for a new battery factory in Woodruff, SC, to produce its new line of electric vehicles.
Leading US Exporter: According to Department of Commerce data, BMW is the largest automotive exporter by value in the United States, exporting over $10 billion worth of US-made vehicles in 2024.
Mercedes-Benz’s Export Power: Mercedes-Benz, which builds around 350,000 vehicles at its plant in Tuscaloosa, Alabama, exports two-thirds of that production to 150 countries worldwide.
Proposed Tariff Solution: To ease trade tensions, Mercedes CEO Ola Källenius has proposed a one-for-one, duty-free trade system between the U.S. and the EU. Ford CEO Jim Farley has echoed the sentiment that US-based exporters deserve credit in trade policy.
American Factories, Global Reach
Both BMW and Mercedes-Benz operate some of their most significant global production facilities in the United States. BMW’s Spartanburg factory is its largest in the world, assembling popular models like the X3, X5, and X7 for both American and international customers.
This strong export business is a central point in the ongoing tariff negotiations. Automaker executives argue that their substantial contribution to a more balanced U.S. trade balance should be a key consideration. “Two-thirds of the vehicles from our plant in Tuscaloosa, Alabama, are exported,” noted Källenius. “We believe this should be taken into account.”
Next-Generation EVs to be “Made in America”
BMW’s investment will bring production of its newest electric vehicles to the United States. The upcoming iX5, iX7, and iX6 models will be built in South Carolina and will feature cutting-edge technology, including:
800V electrical architecture for faster charging.
Sixth-generation cylindrical battery cells for 20% higher energy density and 30% more range.
A new digital cockpit with a panoramic head-up display.
This move ensures that some of the most advanced electric vehicle technology in the world will be developed and produced by American workers, cementing the U.S. as a leader in the global transition to electric mobility.
Frequently Asked Questions (FAQ) – US Auto Manufacturing and Exports
1. Why are German car companies like BMW investing so much in the US?
BMW is investing $1.7 billion in its South Carolina facilities to build its next generation of electric vehicles (EVs). This allows the company to manufacture cars closer to its American customers, leverage its largest and most productive global factory, and position the US as a key hub for its EV strategy.
2. What new electric cars will BMW build in the US?
BMW plans to build several new all-electric models at its expanded Spartanburg, South Carolina factory, including the iX5 (starting next year), the iX7 (starting in 2027), and the iX6 (starting in 2028).
3. How do US tariffs affect automakers like BMW and Mercedes?
Tariffs create financial uncertainty and can decrease profit margins. Mercedes-Benz noted that current tariffs could reduce its profit margins and has withdrawn its 2025 earnings guidance due to the unpredictable trade situation. This affects long-term investment decisions for these global companies.
4. How important are these companies to US exports?
They are extremely important. BMW is the largest US automotive exporter by value, exporting over $10 billion worth of American-made cars in 2024. Similarly, Mercedes-Benz exports approximately two-thirds of all the vehicles it manufactures at its plant in Alabama.
5. What solution has been proposed to solve the tariff issue?
Mercedes CEO Ola Källenius has proposed a “one-for-one” trade system. Under this idea, for every car a company exports from the US to the EU, it could then import one car from the EU to the US duty-free. This would create a balanced, tariff-free trade flow for an equal number of vehicles.