SPARTANBURG, S.C. — BMW said Tuesday that it would begin producing electric vehicles in the United States by the end of the year, a contrarian move when many automakers are slowing investment in the technology.
The iX5, a midsize electric SUV, which BMW unveiled Tuesday, will be the first new EV to roll off the assembly line at the German automaker’s factory in Spartanburg, South Carolina. By 2030, the company plans to produce at least six electric models at the plant, its largest outside Germany.
Other automakers have delayed or canceled EV projects in recent months and recorded multibillion-dollar losses as a result. They have been responding to weak U.S. sales after Congress eliminated subsidies for electric car purchases.
BMW exports about half the vehicles it makes in Spartanburg, where it produced more than 400,000 vehicles last year. The South Carolina complex is the company’s main hub for producing the X5 and other SUVs.
Exports allow BMW to benefit from strong demand for EVs in Europe, where they account for 20% of new vehicle sales. That compares with about 6% in the United States.