The XM is the elephant within the room in additional methods than one. BMW wished the “G09” to function a religious successor to the M1. Let’s face it; that was by no means going to occur. One is a humongous plug-in hybrid SUV about as heavy because the moon whereas the opposite is a mid-engined, low-slung, light-weight sports activities automotive. Advertising and marketing hype apart, the tough actuality is the supposedly M flagship isn’t doing all that effectively.
Numbers don’t lie – the XM is the slowest-selling BMW in the US to this point this yr. Okay, you could possibly make the purpose that it was by no means going to promote like hotcakes given its exorbitant price ticket. Nonetheless, deliveries by September had been down by 14.2% to 1,385 items. Lest we neglect the luxobarge wasn’t totally accessible within the US till later in 2023. That makes 2024 the primary full yr on sale for the XM, and but demand is already dropping.
As well as, BMW projected the US could be the XM’s largest market with 26% of whole demand. If it’s not performing right here, then the place? Not even the Label Pink (later rebranded as simply the Label) can transfer the needle, regardless of being the corporate’s strongest manufacturing car ever. On the finish of 2023, M CEO Frank van Meel advised High Gear that it was a mistake to launch the warmer model so early within the life cycle.
BMW is already trying to simplify the XM’s lineup within the US by dropping the bottom mannequin. The conventional 644-horsepower model is more likely to go away subsequent summer time, leaving solely the Label. There’s additionally a lesser six-cylinder 50e mannequin nevertheless it’s not accessible in North America. By discontinuing the usual mannequin we get right here within the US, the XM will robotically get much more costly. You’ll be able to have the 2025 XM for $159,925 whereas the XM Label begins at $185,925.
How is a soar in value of $26,000 going to assist with gross sales? You might argue that with luxurious autos, it’s not all about what number of automobiles are bought as revenue margins are simply as essential. However to make a revenue, you need to promote automobiles within the first place. BMW solely moved 307 XMs within the third quarter of 2024. Certainly it’s underperforming, proper?
That brings me to the query: What went fallacious? The actual fact it’s so costly definitely hurts demand. Though I believe the XM doesn’t look that dangerous within the metallic offered it’s the best spec, the car’s uncommon look should’ve deterred some patrons. Nonetheless, I believe there’s extra to it than that. The value and design probably had a detrimental impression, however one other “enemy” is inside BMW’s lineup.
The X5 M Competitors. Not solely does it look regular, nevertheless it’s additionally less expensive. At $125,975, it undercuts the bottom XM by slightly below $34,000. Because it eschews the plug-in hybrid setup, it’s additionally a lot lighter. By relying solely on a very good ol’ V8 engine, efficiency is extra constant because it doesn’t rely on the accessible juice within the battery pack. Not that 0-60 mph instances matter with these giant SUVs, however an X5 M Competitors does the job in 3.7 seconds. An everyday XM takes 4.1 seconds.
Solely the XM Label is faster, albeit solely by a tenth of a second, at 3.6 seconds, however then you definitely’re taking a look at an almost $60,000 distinction between the 2. Enjoyable truth – you could possibly purchase an M340i with that cash. Alternatively, one might purchase a $153,395 ALPINA XB7 and nonetheless have about $6,000 to spend on choices. So it’s clear that BMW already had a few efficiency SUVs on this echelon. This begs the query – who’s the XM for?
In case you’re after efficiency, the X5 M Competitors looks like a wiser selection. Let’s imagine the identical for the XB7, offered you possibly can dwell with these uncommon break up headlights. We shouldn’t ignore the X6 M Competitors both, which can be way more attainable than the XM. Circling again to my query concerning the XM’s clientele, the M boss mentioned in October 2022 that it’s for individuals who’ve had a Lamborghini Urus and/or a Mercedes G-Class and desire a related high-end product from BMW.
As to why the primary devoted M mannequin for the reason that M1 wasn’t one other supercar, a BMW official defended the choice again in February 2023. Sarah Lessmann, Product Supervisor at BMW M GmbH, mentioned buyer preferences have shifted towards SUVs for the reason that days of the M1:
“Prospects world wide right this moment are searching for SAVs/SUVs that ship practicality and excessive efficiency in a single luxurious package deal. These autos have the potential to considerably drive development for automotive producers transferring ahead.”
Assuming that the XM needed to exist for no matter motive, what might have BMW achieved otherwise? I’m going to exit on a limb and say the mannequin shouldn’t have carried the “world’s strongest letter.” As a substitute, it ought to’ve been badged as an X8. In truth, early rumors had hinted at this moniker earlier than the Idea XM broke cowl in November 2021.
By not carrying the M badge, the X8 would’ve been less expensive. Positive, the revenue margins would’ve been decrease, however BMW might need bought extra. The XM continues to be comparatively new and has a number of years forward to redeem itself. Will it? Solely time will inform. As we reported in June, a call concerning a second era is nonetheless pending. Nonetheless, we gained’t be too shocked if there gained’t be one other one.
The “G09” is believed to stay in manufacturing till close to the tip of 2027. We haven’t heard something a couple of Life Cycle Impulse, though we are able to’t think about an LCI doing any wonders.
Maybe we’re being too pessimistic concerning the XM. By way of the primary six months of 2024, international gross sales really jumped by 53.3%. Nonetheless, solely 3,807 items had been bought all around the world. As soon as once more, it’s not a totally truthful comparability for the reason that electrified SUV wasn’t totally accessible in the course of the first months of 2023.
Seeing the glass half full, we are able to (possibly) respect BMW for experimenting. However similar to with the three Sequence and 5 Sequence/6 Sequence Gran Turismo fashions, it doesn’t appear to be understanding. Ideally, we’re going to get that long-awaited supercar sooner or later as an alternative of the umpteenth SUV.
