*pictured is the all-new BMW X4

Celebrating 20 years of production in the US, BMW has announced plans to expand its family of vehicles in the X model line-up with a completely new BMW X7 model set to compete against the Mercedes-Benz GL-Class.

BMW X7 to be built at Plant Spartanburg

The German firm has confirmed plans to invest 1 billion US dollars into their plant located in Spartanburg, South Carolina, where the X7 will be built.

“We will expand the plant’s annual production capacity by 50% up to 450,000 vehicles by the end of 2016. Today’s capacity is around 300,000 vehicles. This investment will also create an additional 800 jobs, increasing the total workforce to 8,800 on site,” saidNorbert Reithofer, chairman of the board of management for BMW Group.

Although BMW hasn’t said much about its new X7, reports have suggested that the model will be a seven-seat crossover that will be launched in 2017 or 2018. It is also believed that the model will ride on a new platform underpinning the next-generation 5- and 7-Series.

Other than that, the BMW has confirmed plans to produce an X5 plug-in hybrid at the plant in the “near future”. The model was previewed by the Concept X5 eDrive and will most likely have a TwinPower Turbo four-cylinder petrol engine, an electric motor and an xDrive all-wheel drive system.

The South Carolina plant currently builds all of BMW’s crossoversincludingthe X3, X5 and X6, and will begin production of the new X4 (pictured) which is currently underway.