FTZ News: Spartanburg, South Carolina | At a time when global competition in the automotive industry is intensifying and policymakers in Washington continue debating tariffs and supply chain strategy, one success story in South Carolina is quietly proving a broader point: America's Foreign-Trade Zone (FTZ) Program remains one of the country's most effective tools for strengthening domestic manufacturing, expanding exports, and keeping U.S. industry globally competitive.
On June 30, 2026, BMW Group announced the successful completion of its $1.7 billion investment project at its Spartanburg manufacturing campus, located within Foreign-Trade Zone No. 38 (FTZ 38). The facility, now the largest BMW production plant in the world, manufactures hundreds of thousands of American-built vehicles each year and exports them to more than 120 countries.
The announcement represents far more than the expansion of a single factory. It highlights how America's Foreign-Trade Zone Program continues to support long-term industrial investment while reinforcing the nation's manufacturing base and export economy.

FTZ 38: More Than a Customs Advantage

Although Foreign-Trade Zones are often viewed simply as customs incentive programs, FTZ 38 demonstrates that their economic value extends much further.
By operating within the zone, BMW has been able to reduce customs-related costs, improve supply chain flexibility, and strengthen its position in global markets. Those advantages have helped the company expand exports, support continued investment in U.S. manufacturing, and remain competitive against international rivals.
As countries around the world compete aggressively to attract advanced manufacturing, Spartanburg illustrates how the U.S. FTZ Program continues to provide American industry with a meaningful competitive advantage.

BMW: FTZ 38 Helps Keep Us Competitive

Bryan Jacobs, Vice President of Government Affairs for BMW Group, emphasized the importance of the program:
"The Spartanburg plant is one of America's greatest manufacturing success stories, and FTZ 38 has helped us remain competitive while expanding our exports."His remarks reinforce what many manufacturers already recognize: participation in a Foreign-Trade Zone is not merely an administrative benefit. It has become a strategic component of competing successfully in today's global economy.

FTZ News Analysis

Much of the national conversation in recent years has centered on tariffs, trade policy, and global competition. Yet the success of FTZ 38 suggests that long-term industrial strength depends on more than tariff policy alone.
BMW's $1.7 billion investment demonstrates that when smart trade policy is paired with modern infrastructure and targeted economic incentives, the result is stronger domestic manufacturing, higher exports, sustained private investment, and high-quality American jobs.
The Spartanburg facility stands as a powerful example of how a Foreign-Trade Zone can connect global supply chains with American production while reinforcing the United States' position as one of the world's leading manufacturing and export economies.
While Washington continues debating the future of trade policy, FTZ 38 offers a practical example of what works. America's Foreign-Trade Zone Program continues to strengthen manufacturing, expand exports, attract investment, and preserve the nation's industrial leadership. BMW's success in Spartanburg is another reminder that well-designed trade policy can deliver measurable results for the American economy.