Next X3 to be Built in USA plus Ongoing Plans for Magna and BMW

According to the German daily newspaper Financial Times Deutschland,BMW is making preparations for the next generation X3 that won’t include Magna Steyr, the division of Magna International that currently builds the compact Sports Activity Vehicle at its Graz, Austria plant. A source at BMW told the newspaper, “that was just decided.” The brand is now preparing to move production of the next generation X3 to its Spartanburg South Carolina facility, where it currently builds the X5 and Z4-series sports cars.

The move of the X3 to a centralized production facility was done in order to increase the production output at Spartanburg. As of last year, the plant only produced 105,000 vehicles, which essentially means that the factory is running at half capacity. In total, BMW estimates that the plant could turn out as many as 200,000 units. By bringing the popular X3 to South Carolina, BMW would be able to stabilize output fluctuations created by the market and by the demand for the larger X5.Last year, BMW sold 114,000 X3s around the globe. Furthermore, Spartanburg will also be the production location for the forthcoming X6 coupe-SAV crossover, which is scheduled to arrive in 2009. The X6 is expected to be to the X5 what the 6-Series is to the 5-Series; an upmarket, coupe version. Reports suggest that it will only feature two rows of seats compared to the available three rows of seating in the new X5.

Once the next generation X3 starts production in the US in 2010, the Austrian facility might have a new production job from BMW. A company spokesperson told British magazine Autocar that, “We have been very happy with our relationship with Magna in Austria and there is a chance we might place production orders for future niche products there.”

Autocar painted a picture of the potential vehicles that might be built at the Graz facility, with potential candidates being a more compact SAV called the X1, or the Z10 flagship sports car rumored to compete with the SL. Also on the table are the long-rumored F-Series people-carriers, including the F3, a five-seat, tall wagon based on the 3-Series, and the F5, a seven-seat, tall wagon based on the 5-Series. Of course, none of these have been confirmed by BMW, so we’ll have to wait and see what happens.

Meanwhile, the next-generation small sports car, the successor to the Z4, is reportedly being shifted away from South Carolina to Regensburg, Germany, the home of the 3-Series. A spokesperson said, “There are possible production synergies with other open-top models in our range.”