To commemorate the 50th anniversary of the M division, BMW initiated the launch of the XM plug-in hybrid SUV in 2022, marking the onset of the M vehicle line that did not evolve from an existing BMW model since the debut of the M1 supercar in the closing years of the 1970s.
A report on Tuesday from supplier informers, shared by Automotive News (a subscription may be necessary), indicated that BMW intends to halt the production of the XM after 2028 with no plans for the hybrid SUV’s successor.
Reportedly, the company’s aspirations to produce an electric XM, anticipated to begin fabrication in late 2028 at the same South Carolina facility where its hybrid counterpart is assembled, have been abandoned too.
2024 BMW XM Label Red
The XM emerged as a competitor to expensive luxury performance SUVs akin to the Lamborghini Urus, Aston Martin DBX, and elite Porsche Cayenne models. Even though these challengers achieved popularity with their brands, the XM struggled to captivate the marketplace. In North America, BMW distributed a mere 2,315 units in 2023, and the outlook for 2024 does not appear more promising.
Looking beyond its divisive aesthetic and a steep inauguration price of $160,000, the XM does not match up to the swiftness of its competitors, nor is it particularly efficient, as was demonstrated during our assessment drive.
In an attempt to revitalize consumer enthusiasm, BMW unveiled a more robust XM Label Red variant. The standard XM generates 644 horsepower, whereas the Label Red version elevates the number to 738 horsepower, positioning it as the pinnacle of engine strength within the M lineup. Both configurations boast a dual-turbocharged 4.4-litre V-8 allied with an individual hybrid element. The hybrid mechanism is harmonized with the gearbox, in this situation an 8-speed automatic.
Despite the XM’s imminent discontinuation, its propulsion system shall persist in additional BMW vehicles. This very engine was incorporated in the newly redesigned 2025 M5, which was showcased on Tuesday, and it’s also predicted to be implemented in forthcoming iterations of the X5 M and X6 M models.
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