MUNICH, Germany -- BMW's chief executive told shareholders Thursday that maintaining its operations in South Carolina is a long-term strategy.

Norbert Reithofer said BMW must be active in the world's largest car market in order to be successful.

BMW announced earlier this year that it would take advantage of the weak dollar by expanding production at its plant in Greer. It's spending $750 million to expand facilities for its X5 sport utility vehicle and the new generation of its X3 SUV.

The company plans to increase production in Greer from 160,000 vehicles a year to 240,000 annually by 2012.

Reithofer said he wants to increase purchases from suppliers in South Carolina. He said North America purchases are being made for its plants in Europe.