BMW announces additional investment and 500 more jobs at South Carolina factory

MUNICH, GERMANY---BMW announced today that it will invest an additional
US$300 million to expand BMW Manufacturing Corp., its factory in
upstate South Carolina. BMW also will hire an additional 500 associates
to meet the demand for its successful new sports activity vehicle built
exclusively in South Carolina for the world. The announcement was
made at the grand opening of the South Carolina Department of Commerce's
European office, which has been moved from Frankfurt to Munich, Germany.
"Over the next few years, we will invest an additional US$300
million at our South Carolina facility---an amount equal to our
original investment," said Dr. Norbert Reithofer, BMW Board of
Management Member responsible for worldwide production. Dr. Reithofer is
a former president of BMW Manufacturing and was appointed to the
management board in March. Joining Dr. Reithofer for the announcement
was South Carolina Governor James Hodges, Secretary of Commerce Charles
S. Way Jr. and BMW Manufacturing Corp. President Dr. Helmut Leube. Dr.
Reithofer said the modifications to the factory's manufacturing areas
will provide "the flexibility and capability needed for the
preparation and production of exciting new models we are now
developing." The 500 jobs will be added to support the growing
demand for BMW's X5 sports activity vehicle worldwide. The X5 went on
sale in the United States in December 1999 and began appearing in
European dealerships in May. "By the end of the year, 3,500 South
Carolinians will have high-wage, high-skill jobs at BMW, demonstrating
again that BMW's success is South Carolina's success," said
Governor Hodges. "We have all witnessed the economic transformation
that began with BMW's announcement in 1992 and still continues to bring
exceptional achievement and world-class craftsmanship home to South
Carolina. We are delighted to share in their achievement today."
"BMW's deep commitment to South Carolina continues to strengthen
bringing the entire state prosperity through direct and indirect
benefits including contributions to our schools and communities and
through the 36 BMW suppliers that also invested and created new jobs and
opportunities here in the Palmetto State," said Secretary of
Commerce Charles S. Way Jr. BMW has invested more than US$1.4 billion
in its 2.3 million square-foot factory and more than 3,000 associates
work at the plant located off Interstate 85 between Greenville and
Spartanburg in upstate South Carolina. Thirty-six suppliers are located
in South Carolina within a few hours drive on the plant, and 26 chose
to locate North American operations in the state to partner with BMW.
And those suppliers employ about 4,700 workers and have invested more
than US$1 billion in their South Carolina operations. The South
Carolina factory is the sole producer of Z3 roadsters and coupes, M
(Motorsport) roadsters and coupes and the X5 sports activity vehicles
for worldwide distribution. BMW Manufacturing Corp. is a subsidiary
of BMW AG, Munich, and is an essential link in the BMW Group's
international production network. In addition to the South Carolina
manufacturing facility, BMW's North American subsidiaries include
sales, marketing and financial services operations in the United States,
Canada and throughout Latin America; an information technology
consulting and systems integration firm in South Carolina; a production
facility in Mexico; and a design firm in California.