BMW will build its next Z4 model in Regensburg, Germany, rather than Spartanburg, US, where the current model is built.

A spokesperson on Thursday confirmed that the changeover will take place when the Z4 model is replaced. It is due to go into production towards the end of next year, but BMW has not confirmed a date.

BMW's plant in Spartanburg, South Carolina will focus on building SUVs of all sizes. Capacity at the plant is currently being increased from 140,000 units to more than 200,000 units. It already builds the X5 and will now also build the successor to the current X3 and the new X6 that is also due at the end of 2008.

The X3 has been assembled by Magna Steyr in Austria since 2003. A replacement for that model is not due until around 2010. Magna acknowledged in May this year that BMW had said that it would assemble the next generation X3 in its own plant in Spartanburg. X3 production represented approximately 45% of total vehicles assembled at Magna Steyr in 2006.