BMW is “here for the long game” in the U.S. as it completes a $1.7 billion South Carolina investment and prepares to build fully electric vehicles at its largest plant, its North America CEO told FOX Business.

Sebastian Mackensen, president and CEO of BMW of North America, said the investment marks a major milestone in the automaker’s U.S. manufacturing strategy and proves BMW is doing more than making promises.

“One thing is to announce an investment and another one is to actually do the investment, implement it, [and] build the expansion of this facility,” Mackensen told FOX Business.

The expansion, first announced in 2022, includes a $1 billion upgrade at BMW’s Plant Spartanburg and a $700 million battery assembly facility in nearby Woodruff, South Carolina.

BMW COMPLETES $1.7 BILLION SOUTH CAROLINA EXPANSION, UNVEILS ALL-ELECTRIC X5

Sebastian Mackensen, president and CEO of BMW of North America, said the investment marks a major milestone in the automaker’s U.S. manufacturing strategy and proves BMW is doing more than making promises. (FOX Business / Fox News)

As part of that push, BMW also unveiled the all-new X5 on Tuesday at Plant Spartanburg. The automaker said its new iX5, the first battery-electric BMW X5, will become the first fully electric BMW assembled in the U.S. when production begins at the end of this year.

The iX5 is expected to be the first of several electric models built in South Carolina. At least five additional fully electric BMW models are expected to be assembled in the U.S. by 2030, according to the company.

The move comes as some automakers have scaled back or delayed their EV plans. BMW, however, says it is staying the course.

“We are convinced that the EV is a relevant and here-to-stay drivetrain option,” Mackensen said. “Will it be the majority of vehicles sold? Probably not in the U.S., at least not in the foreseeable future. But at the same time, we are exporting to global markets from this plant.”

FORD ROLLS INTO NATION’S CAPITAL WITH HISTORIC CAR SHOWCASE CELEBRATING AMERICA’S 250TH

That global reach has long been central to Plant Spartanburg’s role within BMW’s manufacturing network.

Plant Spartanburg, first established more than three decades ago, currently assembles BMW vehicles including the X3, X6, X7 and XM for both U.S. and international customers. 

Mackensen said BMW’s growth in South Carolina has also had a broader economic impact, helping attract suppliers and other businesses to the region.

“It has really had a changing impact on the whole community, not only in Greenville [and] Spartanburg, but also for the entire state,” Mackensen said. 

That local footprint is also part of a larger U.S. strategy. Mackensen said the U.S. is BMW’s second-largest market by volume and remains central to the company’s global plans.

POLESTAR BANNED FROM US MARKET UNDER RULE TARGETING CHINA-LINKED CONNECTED VEHICLES

Vehicles await export at the Port of Charleston in South Carolina. (BMW / Fox News)

“It shows our clear commitment to the U.S. market,” Mackensen told FOX Business. “It makes a lot of sense to assemble your cars where your customers are.”

BMW said it has been the largest automotive exporter from the U.S. by value for more than a decade, exporting nearly 3 million vehicles worth more than $113 billion from 2014 through 2025.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

FOX Business’ Louis Casiano contributed to this report.

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.4 trillion in assets under management as of June 30, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.