BMW plans to double US output from 120,000

Bayerische Motoren Werke (BMW) AG has long-term plans to double production from its US operations from 120,000 units last year, possibly after five years, a company source said.

The source said the plan follows BMW's strategy to "follow its customers".

"Producing in the country where demand exists is also a natural hedging against currency risks," the source added.

About 82,000 of the total 120,000 output at the company's only US plant in Spartanburg, South Carolina were X5 special utility vehicles (SUV). The rest were Z3 cars.

More than half of the 82,000 were sold in the US and BMW officials have previously said SUV demand there is expected to grow.

In the first five months this year, about 40,500 units of X5 were sold in the US.

The source was unable to say whether new plants are planned to generate the increased production.