The XM is the elephant within the room in additional methods than one. BMW needed the “G09” to function a non secular 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 automobile. Advertising 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 USA thus far 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 via September have been down by 14.2% to 1,385 models. Lest we overlook the luxobarge wasn’t totally out there 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 greatest market with 26% of whole demand. If it’s not performing right here, then the place? Not even the Label Purple (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 instructed Prime 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 traditional 644-horsepower model is prone to go away subsequent summer time, leaving solely the Label. There’s additionally a lesser six-cylinder 50e mannequin but it surely’s not out there in North America. By discontinuing the usual mannequin we get right here within the US, the XM will routinely get much more costly. You possibly can have the 2025 XM for $159,925 whereas the XM Label begins at $185,925.
How is a bounce in worth of $26,000 going to assist with gross sales? You would argue that with luxurious automobiles, it’s not all about what number of vehicles are offered as revenue margins are simply as vital. However to make a revenue, it’s important to promote vehicles within the first place. BMW solely moved 307 XMs within the third quarter of 2024. Absolutely it’s underperforming, proper?
That brings me to the query: What went flawed? The actual fact it’s so costly definitely hurts demand. Though I believe the XM doesn’t look that dangerous within the steel supplied it’s the proper 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 doubtless had a damaging affect, however one other “enemy” is inside BMW’s lineup.
The X5 M Competitors. Not solely does it look regular, but it surely’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 great ol’ V8 engine, efficiency is extra constant because it doesn’t depend upon the out there 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. A daily 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 an almost $60,000 distinction between the 2. Enjoyable reality – 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?
When you’re after efficiency, the X5 M Competitors looks like a wiser selection. Let’s imagine the identical for the XB7, supplied you’ll be able to stay with these uncommon break up headlights. We shouldn’t ignore the X6 M Competitors both, which can also 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 need 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:
“Clients all over the world at the moment are searching for SAVs/SUVs that ship practicality and excessive efficiency in a single luxurious package deal. These automobiles have the potential to considerably drive progress for automobile producers transferring ahead.”
Assuming that the XM needed to exist for no matter cause, what might have BMW finished in another way? 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 reality, 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 may need offered extra. The XM remains 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 choice relating to a second technology is nonetheless pending. Nonetheless, we gained’t be too stunned if there gained’t be one other one.
The “G09” is believed to stay in manufacturing till close to the top of 2027. We haven’t heard something a few 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, world gross sales truly jumped by 53.3%. Nonetheless, solely 3,807 models have been offered all around the world. As soon as once more, it’s not a very truthful comparability for the reason that electrified SUV wasn’t totally out there through the first months of 2023.
Seeing the glass half full, we are able to (possibly) recognize 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 at some point as a substitute of the umpteenth SUV.
