In a statement released to announce expansion of U.S. Spartanburg plan, BMW officially confirmed production of the all-new X4 crossover.

Rumors about this car have been flying around for years, but now it’s official and it will be here in a bout two years time. The X4 is a smaller version of the X6 designed for the emerging compact crossover market.

BMW will be investing a further $900 million in the Spartanburg plant in South Carolina by 2014. This will create 300 new jobs by the end of this year, increeasing production capacity to 350,000 units. The BMW Group already invested USD 750 million in the expansion of the plant for production of the new BMW X3 between 2008 and 2010.

“This is in response to rising global demand for our BMW X models and the expansion of the BMW X family to include the BMW X4,” Arndt explains at a ceremony to celebrate production of the two-millionth vehicle at the BMW plant in South Carolina since 1994. The move will bring the BMW Group’s total investment in South Carolina to nearly USD six billion.