BMW to Add X3 Production in South Africa

BMW AG is investing 6 billion rand ($417 million) to prepare its supply chain and factory in Rosslyn, South Africa, to build the next-generation X3 small crossover vehicle.

The launch will occur when the current sixth-generation 3 Series, now beginning its fifth year, undergoes its next redesign about one year from now. BMW opened the Rosslyn plant in 1973 and currently assembles about 70,000 3 Series cars there per year. That production will shift to other BMW facilities.

The company will continue to build the X3 in the U.S. at its plant in South Carolina. But adding capacity in South Africa will enable the American complex to launch the upcoming X7 crossover. The U.S. factory, sole source for all other X series crossovers except the German-built X1, is expected to operate at full capacity in 2016.

BMW says it is establishing African production for the X3 because it anticipates “significant” demand for the model throughout that continent.