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Blog Category: BMW

U.S. Secretary of Commerce Penny Pritzker Celebrates BMW’s Investment in U.S. Manufacturing

Secretary Pritzker Speaks with Workers While Touring the BMW Facilities in Spartanburg, South Carolina

Foreign direct investment (FDI) fuels U.S. economic growth and creates good, high-paying jobs, which is why the Commerce Department is so focused on attracting more FDI to the United States. At an event today at the BMW manufacturing facility in Spartanburg, South Carolina, U.S. Secretary of Commerce Penny Pritzker applauded the German automaker for announcing an investment of approximately $1 billion in a new X7 production line at the plant.

BMW’s announcement, which is expected to create 800 new jobs by 2016, builds upon the company’s substantial commitment to production in the United States. BMW has made investments of $6.3 billion since coming to South Carolina in 1992. In 2012, the company announced that it would be expanding its Spartanburg facility to make it the largest plant in the BMW Group production network, a move that is expected to bring 1,000 new jobs to South Carolina by the end of 2014.

Secretary Pritzker delivered remarks at the announcement, focusing on the importance of FDI to the U.S. economy and job creation. The United States is both the largest recipient and source of FDI in the world. As of 2011, the most recent data available, majority-owned subsidiaries of multinational firms with U.S. operations employ more than 5.6 million workers and pay an average annual compensation of $77,600. These firms also spent more than $45 billion in R&D in the United States and accounted for 20.5 percent of U.S. goods exported in 2011. Through the SelectUSA program, which Secretary Pritzker described in her remarks, the Department of Commerce is working to attract increased investment to the United States.

Secretary Pritzker Tours BMW Factory and Training Facilities in Germany

Groupf photo of Pritzker and apprentice training program students

Following the announcement of her strategic vision for the Department of Commerce last week, which includes a focus on ensuring that workers are prepared with the skills that employers need, U.S. Secretary of Commerce Penny Pritzker today toured BMW's training facilities at their headquarters in Munich, Germany with CEO Dr. Norbert Reithofer and Head of Apprentice Training Jan Eggert.  

Secretary Pritzker went to BMW to learn more about how the company implements the German Dual System of Vocational training, through which students receive a technical degree at a local educational institution while simultaneously participating in on-the-job training. BMW has a unique apprenticeship program, which is currently training 4,500 apprentices worldwide with the skills the company anticipates it will need from future employees. BMW has spent 1.2 billion euros on professional development since 2007.

While the majority of BMW apprentices are located in Germany, the company is expanding its program internationally, including at their Spartanburg, South Carolina plant. BMW employs more than 7,000 workers in South Carolina, and they have 70 apprentices at the facility who they are training for BMW careers. The apprenticeship program in Spartanburg has been in place since 2011 and works with three local technical colleges. 

Secretary Pritzker has made skills development a top priority of the Commerce Department for the very first time, and is encouraging businesses to partner with local education institutions on programs that train high-quality workers for in-demand jobs. She will work closely with her counterparts, Secretary of Labor Tom Perez and Secretary of Education Arne Duncan, on these workforce training initiatives. BMW's model is one that can help inform these efforts.