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 and marketing hype apart, the tough actuality is the supposedly M flagship isn’t doing all that nicely.
Numbers don’t lie – the XM is the slowest-selling BMW in the USA up to now this yr. Okay, you may make the purpose that it was by no means going to promote like hotcakes given its exorbitant price ticket. Nonetheless, deliveries by way of September had been down by 14.2% to 1,385 items. Lest we overlook the luxobarge wasn’t absolutely 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 can be the XM’s greatest market with 26% of complete 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 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 season, 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 leap in worth of $26,000 going to assist with gross sales? You might argue that with luxurious automobiles, it’s not all about what number of automobiles are bought as revenue margins are simply as essential. However to make a revenue, you must promote automobiles 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 mistaken? The very fact it’s so costly actually hurts demand. Though I feel the XM doesn’t look that unhealthy within the metallic offered it’s the appropriate spec, the car’s uncommon look should’ve deterred some patrons. Nonetheless, I feel there’s extra to it than that. The worth and design probably had a detrimental affect, 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 just below $34,000. Because it eschews the plug-in hybrid setup, it’s additionally a lot lighter. By relying solely on an excellent 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 a virtually $60,000 distinction between the 2. Enjoyable truth – you may purchase an M340i with that cash. Alternatively, one may 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 alternative. Let’s imagine the identical for the XB7, offered you’ll be able to dwell with these uncommon break up headlights. We shouldn’t ignore the X6 M Competitors both, which can be much more attainable than the XM. Circling again to my query concerning the XM’s clientele, the M boss stated 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 because the M1 wasn’t one other supercar, a BMW official defended the choice again in February 2023. Sarah Lessmann, Product Supervisor at BMW M GmbH, stated buyer preferences have shifted towards SUVs because the days of the M1:
“Prospects world wide immediately are on the lookout 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 shifting ahead.”
Assuming that the XM needed to exist for no matter motive, what may have BMW executed 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 an alternative, 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 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 choice concerning a second technology 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 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 the primary six months of 2024, world 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 very honest comparability because the electrified SUV wasn’t absolutely accessible through the first months of 2023.
Seeing the glass half full, we are able to (possibly) respect BMW for experimenting. However identical to with the three Collection and 5 Collection/6 Collection Gran Turismo fashions, it doesn’t appear to be figuring out. Ideally, we’re going to get that long-awaited supercar someday as a substitute of the umpteenth SUV.
