BMW Spartanburg Plant get major rework

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The 2nd part of this article says that BMW has not decided about expanding the size of the plant. However, I was talking to a supplier of mine, Siemens, and a sales rep told me that Siemens just signed a huge agreement to provide all of the automation systems for a new facility in Spatanburg....

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From AutoWeek:

BMW AG plans to convert its U.S. plant to assemble the X5 SUV and Z4 roadster on one line - and make it easier to add a third model.

The conversion prepares BMW's assembly plant in Spartanburg, S.C., for a larger role. BMW executives won't indicate which nameplate they want to add, but pressure is mounting to move production of the X3 SUV from Europe.

Late this year the plant will consolidate its two assembly lines into one. BMW says the new line will be flexible enough to build the X5, the Z4 and a third model.

That would be a remarkable achievement for BMW, since the X5 - a large SUV - is not built on the same platform as the Z4, a small roadster.

Officials say no decision has been reached on a future model. Norbert Reithofer, BMW's global production chief, has said he would like to see the next-generation X3 built in Spartanburg. That would help BMW compete if the euro continues to strengthen against the dollar.

A weak dollar could lead BMW to invest in its Spartanburg plant, says Tom Purves, CEO of the U.S. sales subsidiary BMW of North America LLC.

"The U.S. is our largest market," Purves said. "If we want it to continue to be an important market, we will do what we did in the first currency crisis in the 1990s, which is to invest more in the United States and build more cars here."

Near capacity

Spartanburg has the capacity to produce 150,000 vehicles annually. Last year it built almost that many: 144,759. This year's changes won't affect that capacity. Any capacity increase would require decisions about investment and additional hiring there.

BMW has contemplated an expansion of Spartanburg's lineup for at least three years. It has taken such preliminary steps as widening its highway access and getting approval for state incentives.
 
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Kirby said:
BMW has contemplated an expansion of Spartanburg's lineup for at least three years. It has taken such preliminary steps as widening its highway access and getting approval for state incentives.
This really kills me. Let me just tell you what BMW's preliminary steps for widening its highway access were: they told the SC state DMV that if the state didn't pay to re-do the interchange at the plant and make it wider, that BMW was going to pull out of the plant and leave SC. They brought nothing to the table except threats - they aren't putting up any money whatsoever to help support the costs of completely revamping a large interchange on a major interstate. This really pissed off alot of SC residents since BMW already made the state pay to build this interchange and provide them with a very expensive access road before they would agree to locate the plant in SC. Not to mention the fact that the state gave them the land for the plant for free, forcing numerous people to give up their houses and land in order to do it. This latest round of bullying was typical BMW business dealings. They have that state wrapped around their finger - SC's government bends over backwards for BMW. Some of the stuff they get away with is truly unbelievable. BMW really pisses alot of SC residents off.

Anyhow, this is interesting. I drive by the plant every time I visit my parents. For the last few months, there have been big cranes and stuff at the plant - it sure looks to me like they are expanding it. I'll be driving by it again this Friday, so I'll see what's going on.
 

epj3

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jrt67ss350 said:
This really kills me. Let me just tell you what BMW's preliminary steps for widening its highway access were: they told the SC state DMV that if the state didn't pay to re-do the interchange at the plant and make it wider, that BMW was going to pull out of the plant and leave SC. They brought nothing to the table except threats - they aren't putting up any money whatsoever to help support the costs of completely revamping a large interchange on a major interstate. This really pissed off alot of SC residents since BMW already made the state pay to build this interchange and provide them with a very expensive access road before they would agree to locate the plant in SC. Not to mention the fact that the state gave them the land for the plant for free, forcing numerous people to give up their houses and land in order to do it. This latest round of bullying was typical BMW business dealings. They have that state wrapped around their finger - SC's government bends over backwards for BMW. Some of the stuff they get away with is truly unbelievable. BMW really pisses alot of SC residents off.

Anyhow, this is interesting. I drive by the plant every time I visit my parents. For the last few months, there have been big cranes and stuff at the plant - it sure looks to me like they are expanding it. I'll be driving by it again this Friday, so I'll see what's going on.
But do remember the number of jobs and stimulation of the local economy bmw made offsets the other, and unfortunate, aspects. I'm not sure everything they would do is justified, but they could EASILY have built a plant in mexico for much much less $$$. The residents can be pissed off all they want, but the money the plant brings in for the state is, again, probably much more than the state is putting out for them.
 
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jrt67ss350 said:
This really kills me. Let me just tell you what BMW's preliminary steps for widening its highway access were: they told the SC state DMV that if the state didn't pay to re-do the interchange at the plant and make it wider, that BMW was going to pull out of the plant and leave SC. They brought nothing to the table except threats - they aren't putting up any money whatsoever to help support the costs of completely revamping a large interchange on a major interstate. This really pissed off alot of SC residents since BMW already made the state pay to build this interchange and provide them with a very expensive access road before they would agree to locate the plant in SC. Not to mention the fact that the state gave them the land for the plant for free, forcing numerous people to give up their houses and land in order to do it. This latest round of bullying was typical BMW business dealings. They have that state wrapped around their finger - SC's government bends over backwards for BMW. Some of the stuff they get away with is truly unbelievable. BMW really pisses alot of SC residents off.

Anyhow, this is interesting. I drive by the plant every time I visit my parents. For the last few months, there have been big cranes and stuff at the plant - it sure looks to me like they are expanding it. I'll be driving by it again this Friday, so I'll see what's going on.

All right - we have a "spy"! We have a customer in Spartanburg, and every time I go there I want to visit the plant. But so far business schedules just haven't permitted the free time when I have been there. Two co-workers are going there in Feb, but I'm not scheduled for that trip.

That type of leveraging is typical for big business. We recently got a Cabela's Superstore about 20 miles from here. The economic packages from the state were pissing off people, and two townships were in a bidding war to win the building site. They got free highway improvements, 10 or 20 year tax amnesty, etc. But it has been a huge success and is bringing in a lot of tourism $$. Now satellite hotels, restaurants. etc. are springing up.
 
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Kirby, who's your customer in Spartanburg? My parents live in Greenville - that's pretty much where I grew up. The plant is pretty neat, and it is definitely worth taking the tour if you have the time. The last time I was there, they were pumping out Z3s like crazy and just beginning to ramp up production on the X5. They were also just starting to build a few pre-production Z3 and M coupes when I was there - they hadn't even been announced yet. I would like to go back now that the Z4 is being built there. The father of one of my best friends in middle and high school is the supervisor of the powertrain assembly part of the line at the plant.

Eric, yes, the plant has brought a lot of extra business to the area, as a good number of the parts suppliers for the Z4 and X5 have built plants in the upstate of SC. BMW uses a very low parts stockpile method of manufacturing at the plant - parts aren't delivered to the plant until they are needed to build an individual car. This necessitated that alot of new parts suppliers build plants in close proximity to the BMW assembly plant. But, BMW's public relations with the people of SC aren't very good, and BMW just constantly wants more and more from the state for free. If they were smart, they would just work a little harder to cultivate a better PR image so that the poeple of SC don't just see BMW bullying the state into giving them anything and everything they want. If they would just put a little effort into PR, the residents and government of the state wouldn't be nearly as pissed off at them.
 

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That type of leveraging is typical for big business. We recently got a Cabela's Superstore about 20 miles from here. The economic packages from the state were pissing off people, and two townships were in a bidding war to win the building site. They got free highway improvements, 10 or 20 year tax amnesty, etc. But it has been a huge success and is bringing in a lot of tourism $$. Now satellite hotels, restaurants. etc. are springing up.
And a lot of the same is true here in Washington for Boeing. Taxpayers are footing the bill for all the tax "breaks", etc. Boeing got and they are not sure what they got in return? Consider that our un-employment is one of the highest in the nation. And yes I am sure that the benefactors of Boeing contracts and their employees are happy, but the general public is rasing an eyebrow.
 

aNoodle

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jrt67ss350 said:
This really kills me. Let me just tell you what BMW's preliminary steps for widening its highway access were: they told the SC state DMV that if the state didn't pay to re-do the interchange at the plant and make it wider, that BMW was going to pull out of the plant and leave SC. ...BMW really pisses alot of SC residents off....
Well that freeway in SC is so bad....it's about time somebody kicked the state in the butt to get to work! SC is among a hand full of states that throw out the FHTA guidelines. I-85 there is SO SO BAD. I know SC is poor, but I don't have much sympathy.
 
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Big Daddy said:
And a lot of the same is true here in Washington for Boeing. Taxpayers are footing the bill for all the tax "breaks", etc. Boeing got and they are not sure what they got in return? Consider that our un-employment is one of the highest in the nation. And yes I am sure that the benefactors of Boeing contracts and their employees are happy, but the general public is rasing an eyebrow.
True, but they still moved the headquarters to Chicago. They are committed (as of this time) to still build planes here, but the presence is not like it once was here in the state. They uprooted the headquarters because Washington State didn't give them all the tax breaks they wanted and Chicago would...
 
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aNoodle said:
Well that freeway in SC is so bad....it's about time somebody kicked the state in the butt to get to work! SC is among a hand full of states that throw out the FHTA guidelines. I-85 there is SO SO BAD. I know SC is poor, but I don't have much sympathy.
I don't know what you are talking about. I-85 between the south side of Greenville and nearly to Gaffney is almost all newly constructed via numerous phases over the past 10 years. There is absolutely nothing wrong with the interstate in front of the BMW plant. No one can figure out why they think they need a bigger interchange than they have since they are the only ones that use that interchange (it was built for them!!) - there is basically nothing else at that exit. It's not like they have trucks coming in and out of that plant onto or off of I-85 every second of every day. Whenever I've driven by the interchange in question, I've never seen a semi-truck using it. If you go north towards Charlotte (towards I-26) from the BMW plant, the interstate is beautiful - 3 lanes each direction, new pavement, nice banked turns, and a 70 mph speed limit. I'm not defeding SC roads, because in general, SC roads are crap. However, there is absolutely nothing wrong with I-85 between the BMW plant and I-26 (which is BMW's main shipping artery to take cars to the port in Charleston) and there is no reason they should be having a fit about their private interchange. If they want it bigger, why don't they help invest some capital into it and split the cost with the state? After all, they are the only ones who stand to "benefit" from the multi-million dollar project, and they didn't invest any resources the first time around.

When was the last time you drove through there? Honestly, the roads in Georgia aren't any better than those in SC.

If someone can host a video for me, I will video the interchange in question and video the plant as I drive by it tomorrow.
 

epj3

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jrt67ss350 said:
I don't know what you are talking about. I-85 between the south side of Greenville and nearly to Gaffney is almost all newly constructed via numerous phases over the past 10 years. There is absolutely nothing wrong with the interstate in front of the BMW plant. No one can figure out why they think they need a bigger interchange than they have since they are the only ones that use that interchange (it was built for them!!) - there is basically nothing else at that exit. It's not like they have trucks coming in and out of that plant onto or off of I-85 every second of every day. Whenever I've driven by the interchange in question, I've never seen a semi-truck using it. If you go north towards Charlotte (towards I-26) from the BMW plant, the interstate is beautiful - 3 lanes each direction, new pavement, nice banked turns, and a 70 mph speed limit. I'm not defeding SC roads, because in general, SC roads are crap. However, there is absolutely nothing wrong with I-85 between the BMW plant and I-26 (which is BMW's main shipping artery to take cars to the port in Charleston) and there is no reason they should be having a fit about their private interchange. If they want it bigger, why don't they help invest some capital into it and split the cost with the state? After all, they are the only ones who stand to "benefit" from the multi-million dollar project, and they didn't invest any resources the first time around.

When was the last time you drove through there? Honestly, the roads in Georgia aren't any better than those in SC.

If someone can host a video for me, I will video the interchange in question and video the plant as I drive by it tomorrow.
Again I don't think you're looking deep enough into the advantages of having the factory there. The state wouldn't be paying for it if there weren't something to gain. That's part of what the government is all about... controlling that kind of stuff.

Look at it this say... the unemployment rate would be much much much higher if it weren't for the factory there. BMW in general, between the factory, offices, their museumes, driving schools, etc. brought a lot of jobs and money to the area. If they just left and went to mexico or something, that would be a pretty big loss for that area. Just becuase the PEOPLE of the state think it's unfair for bmw to need a new interchange, doesn't mean they don't. A lot of people think a lot of different things, that just is wrong becuase they don't know or think enough about the advantages in the end.
 
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epj3 said:
Again I don't think you're looking deep enough into the advantages of having the factory there. The state wouldn't be paying for it if there weren't something to gain. That's part of what the government is all about... controlling that kind of stuff.

Look at it this say... the unemployment rate would be much much much higher if it weren't for the factory there. BMW in general, between the factory, offices, their museumes, driving schools, etc. brought a lot of jobs and money to the area. If they just left and went to mexico or something, that would be a pretty big loss for that area. Just becuase the PEOPLE of the state think it's unfair for bmw to need a new interchange, doesn't mean they don't. A lot of people think a lot of different things, that just is wrong becuase they don't know or think enough about the advantages in the end.
Well, I definitely understand and acknowledge that the plant brought alot of jobs to the upstate of SC - in fact, about 4,800 jobs have been created by BMW coming to the area and expanding the plant as much as they have since it was built. The plant coming to the Greenville/Spartanburg area has been a big boom to the area. If BMW pulled out of the area, the local economy would tank. Everyone acknowledges that.

However, while BMW has been great for spurring the economy of upstate SC, some of BMW's demands tend to aggravate both the citizens of SC as well as the SC government. It wasn't just the PEOPLE of SC that thought BMW's demands for a new interchange were ridiculous, especially when BMW couldn't prove that they needed a bigger one and continued to refuse to help build it. In fact, the government looked into the validity of the request and determined that BMW hadn't outgrown the interchange they have and refused to expand the interchange. The government was adamant about it. It was after the denial of the request that BMW began to threaten abandoning their $1.4 billion plant. I mean, how realistic is that? BMW simply handled the situation very childishly - "If you don't give me what I want, I'm leaving." This raised eyebrows both among the taxpayers of SC and among SC government officials. The interchange deal is not the first time that eyebrows have been raised - there are lots of other things that the state and citizens have "played along" with. Like the fact that BMW provides every employee with the option of driving a brand new BMW (they get new ones every few months) for next to nothing, yet BMW pays no taxes on any of those vehicles. Many of the people who work at BMW have two of these vehicles. Since SC has personal property taxes on vehicles that are based on the value of the vehicle, imagine how much money the state is losing out on if all of their 4,800 employees have a brand new BMW for which no property taxes are paid - if you estimate that each of these brand new BMWs would have a personal property tax of about $1000 per year (very conservative), then that's over $4.8 million of lost revenue to the state per year. The people of SC and the government of SC have played along with this without complaining. BMW has lots of "incentives" like this going for them.

To make a long story short, BMW got their way, and the SC taxpayers will be paying for the $35 million interchange. It's not so much the paying for the interchange that is aggravating, especially since BMW has provided alot to the economy in the area. It's the way BMW approached it and dealt with the government officials and the public. They couldn't provide any proof of the need for the interchange beyond open-ended speculation, yet they fully expected the state to bow to their demands and foot the entire bill. When their request was initially denied, BMW threw a hissy fit. It just wasn't good PR at all.
 

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JRT, I've driven I-85 many times through SC....four times in the past two months. Yes, immediately outside the plant, the interstate is what one might expect anywhere else in the nation. Yes, they are slowly joining the rest of the interstate highway system. The rest is SO SO BAD...hasn't been graded (hills are from hell as tractor-trailers speed up and slow down), exit ramps suck, narrow lanes, no shoulders, etc. Are we talking about the same I-85 into Atlanta and NC?
 
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Well, I must be blind, because I drive on I-85 from north of Charlotte down to Greenville and back about every 3 weeks, and I don't think it is any worse than any other interstate in this country. I-85 sucks more in stupid Charlotte than it does anywhere in SC. Some of the interstate around Gaffney, SC is hilly and narrow, but the rest of the stretch from Charlotte to Greenville is perfectly fine, IMO. It is typically a pretty busy interstate, though, so you have to fight the semi-trucks. However, unless you've ever driven I-40 from NC out through to Memphis, TN, you don't know what fighting the semi-trucks is like. I-85 is a car-only interstate compared to I-40.
 
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X3 didn't do to bad in Europe, I see an awful lot of them..........There is one problem with the X3 though for the Germans PRICE, a Semi Fully loaded 3.0d costs 55,610 euro.....that is better than 72k dollars. For 67k euro you can get a loaded 3.0 X5.
 


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