BMW executives have been teasing us for a while now about the firm’s plans to introduce a smaller version of the X6 SAV and today, the company came out with an official announcement confirming the X4.

The new X4 will be built alongside the current X3, X5 and X6 crossovers at the Bavarian company’s U.S. plant in Spartanburg, South Carolina. For this reason, BMW will invest more than US$900 million in the Spartanburg factory over the next three years creating some 300 new jobs by the end of 2012.

“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,” says BMW board member, Frank-Peter Arndt, during a ceremony to celebrate production of the two-millionth vehicle at the BMW plant in South Carolina since 1994.

Arndt added that the investment would allow the factory to increase its annual production to 350,000 units in the mid-term.

BMW has not released any information on the X4, though in a previous interview, the brand’s CEO Norbert Reithofer said that it will measure around 4.65 meters long (same as the X3) and use the same four- and six-cylinder diesel and gasoline engines found in the X3.

The X4 will be positioned between the X3 and the X5 sporting a more aggressive design with a coupe like roofline. Likely rivals including the upcoming Porsche Cajun and possibly a similar model from Audi.

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