BMW's new X6

BMW Manufacturing Co. started production Friday on the second-generation X6 model at its plant near Spartanburg.

"As the world's first Sports Activity Coupe, the BMW X6 holds a special place in Spartanburg's 20-year production history," said Manfred Erlacher, president and CEO of BMW Manufacturing Co. "The bold, new look of the second-generation X6 is a welcome addition to the plant's X-model lineup."

The South Carolina plant is in the midst of a $1 billion investment to increase production volume by 50 percent to 450,000 units annually by 2016. In March, the company also announced that the all-new BMW X7 will be produced in the Upstate.

Many of the cars produced in South Carolina travel through the Port of Charleston.

Staff report

DETROIT - Big discounts helped U.S. auto sales sizzle in July.

Toyota, Ford, Nissan and Chrysler all saw double-digit sales gains. General Motors' sales were up 9 percent compared with last July, while Hyundai's rose 1.5 percent. Of major automakers, only Honda and Volkswagen saw declines.

It was the best July for the industry since 2006. New vehicle sales rose 9 percent to 1.4 million, according to Autodata Corp.

Automakers typically offer deals in the summer to clear out inventory before cars from the new model year arrive in the fall. But July's discounts were unusually high.

Incentives rose 8 percent - or $216 per vehicle - over last July, according to Jesse Toprak, chief analyst for the car shopping site Cars.com. Incentives averaged $2,774 per vehicle, their highest level since August 2010. Toprak said Ford, Toyota, Volkswagen and Hyundai were the most generous; GM and Honda spent less.

Edmunds.com said 13.5 percent of new car loans in July had zero-percent financing, the highest level since December 2010.

John Felice, Ford's U.S. sales chief, says a slowing rate of sales growth will force automakers to get even more aggressive to steal sales away from competitors. That's already happening with small and midsize cars.

But demand for SUVs and trucks remains strong, and so does pricing. Overall, Felice said, buyers are still paying $800 more per vehicle than they did last year. That's because even with discounting, more people are choosing pricier SUVs and loading them up with features.

Michelle Krebs, a senior analyst at AutoTrader.com, isn't alarmed about growing incentives. Things have changed from a decade ago, when automakers were making too many vehicles and had to use across-the-board incentives to sell them. Companies have cut back on production, she said, and they use incentives in a much more strategic way. They're also profitable, so they can afford to give a little on price.

Based on July's sales, J.D. Power and Associates raised its forecast for full-year U.S. sales to 16.3 million vehicles. That's approaching the peak of 17 million set in 2005. Auto sales have led the uneven U.S. economic recovery, with sales increases of 1 million or more vehicles in each of the last four years. But that pace is slowing. U.S. sales totaled 15.6 million in 2013.

Chrysler saw the biggest gain in July, with sales up 20 percent to 140,102, led by the Ram pickup and the new Jeep Cherokee small SUV.