BMW to build new X3 sport-utility vehicles in US

The company Wednesday unveiled the X3 model's new home at its production plant in Spartanburg, South Carolina, which has already been producing the larger X5 and X6 models.

"The US will remain the world's largest premium market for the foreseeable future," said BMW chief executive Norbert Reithofer at the unveiling. The Bavarian firm sells more cars in the US than in any other country, and BMW said it made sense to move the production of a model that was in heavy demand on the US market. The expansion of its Spartanburg plant cost $750 million.

BMW's head of production, Frank-Peter Arndt, rejected speculation that the X1, BMW's smallest SUV model, might also make a move to the US.

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