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BMW is considering adding a fourth model to its Spartanburg, South Carolina factory in order to further compete with U.S. luxury market leaders Lexus and Mercedes-Benz.

The Bavarian firm's chief, Frank-Peter Arndt believes an additional "volume model" could be added to Spartanburg's production line. The introduction of a fourth model would help reduce BMW's exposure to foreign currency, which presently tops US$14 billion. IHS Automotive analyst Rebecca Lindland believes the 3-Series is the most likely candidate for production at Spartanburg: "The 3-Series is a no-brainer." she said.

Of the 1.07 million vehicles BMW delivered last year, 397,103 of them were 3-series models. In spite of a 9.2% rise in U.S. sales from January to September 2010, BMW is still trailing behind Mercedes-Benz and Lexus.

The Spartanburg factory - which makes BMW's X5 and X6 SUVs - recently underwent a US$750 million renovation to squeeze in the compact X3. The introduction of the latter model meant an increase in BMW's U.S. production capacity by a whopping 50%. Roughly 70% of the vehicles built in Spartanburg are exported, with more than 65% of the component parts sourced from North American suppliers.

Giving further credence to the 3-series at Spartanburg rumor is the December 2009 announcement by rival Mercedes-Benz that it would begin building the C-Class at its Alabama factory. It only figures that BMW would want to face this threat head on.

By Tristan Hankins

Source: Bloomberg

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BMW has announced U.S. pricing for its all-new, second-generation X3 before the crossover model arrives in dealerships at the end of the year. Customers can choose from two variants, the X3 xDrive28i that comes with a 3.0-liter inline-six engine producing 240HP and a base price of $37,625, or the X3 xDrive35i with a 300HP turbocharged-six priced at $41,925. Both prices include $875 destination and handling fee.

According to the Bavarian firm, the entry price for the X3 is $2,100 lower than the previous generation model [2010 X3] which started at $39,725.

The two new X3 models come equipped with a standard 8-speed automatic transmission and BMW's xDrive intelligent all-wheel drive system, as well as with Bluetooth connectivity, iPod/USB interface, anti-theft alarm system, and on the X3 xDrive35i, standard Xenon Adaptive Headlights.

The new X3 is built exclusively at BMW's Spartanburg, S.C. factory, with the company claiming that customers will be able to make changes to their vehicle order until six days prior to the start of production.

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BMW has released details of what it will be presenting at the 2010 Paris Motor Show. Alongside the world premiere of the Concept 6 Series Coupé, 2011 X3 SUV and 5-series Touring are new engines, AWD and phone tech for the 5-series and an Efficient Dynamics version of the X3.

The Bavarian automaker is touting standard electromechanical servotronic steering (which adjusts the responsiveness of the steering depending on the vehicle's speed) along with optional Drive Dynamic Control, adaptive headlights, HUD and a "top view" rear view camera available across its 2011 X3 range.

An EfficientDynamics variant of the X3 with stop-start technology and a six-cylinder engine / eight-speed automatic transmission combo will also be shown, but will not be available in the US and Canada.

BMW will also unveil several new engines for its latest 5-series range, including a 3.0-liter in-line six 525d producing 204 hp (150 kw) and a 528i with 258 hp (190 kw) for the Touring (wagon). A twin turbo straight-six 535d diesel with an impressive sounding 300 hp (220 kw) will also be offered in both body styles.

An all-wheel-drive derivative of the 5-series sedan and Touring called xDrive - which will be available with both 535i and 530d engines - will also be officially launched (again, not available in the USA and Canada). xDrive will also be available as an option on all Gran Turismo models and as a sedan-only 550i model.

The 5-series will also get the options of a hands-free tailgate from Q2 2011 and ConnectDrive, which allows Blackberry and iPhone integration. Now you can read and dictate emails from the comfort of the driver's seat, while your back seat passengers take advantage of the wireless internet access. No word on pricing information, of course.

New accessories for the M3 focused on the areas of aerodynamics and the interior, along with M-sport packages for the 5-series sedan / Touring and X3 SUV will also debut in Paris.

By Tristan Hankins