[UPDATE] BMW is retiring the regular V8-powered XM from Europe as well, leaving only the six-cylinder 50e and the Label.
It’s been almost a year since rumors began circulating about an early end for the regular XM in the United States. BMW has now made it official, announcing that its polarizing plug-in hybrid SUV will be offered for the 2026 model year exclusively as the XM Label. Dropping the 644-horsepower version means buyers must now upgrade to the more potent 738-hp variant. It’s the company’s most powerful production vehicle, edging out the 717-hp M5 by a small margin.
We’ll have to wait a bit longer for pricing details, but unless the Label comes in cheaper than last year, buyers will have to spend more to get into an XM. The standard model previously started at $161,425, including the mandatory $1,175 destination and handling fees. The hotter Label started at $186,700, more than $25,000 higher. Hopefully, BMW will narrow the price gap between the two variants. Otherwise, with a higher base price, the controversial M brute may become even harder to sell.
There is also a third, lesser-known version of the XM, but it’s not offered in the U.S. The 50e, primarily sold in Europe, lacks the big V8 engine. Instead of the twin-turbo 4.4-liter S68, it uses the smaller 3.0-liter B58 inline-six. Yes, an M car without an M engine. Had BMW brought this entry-level version to North America, it might have sold more XMs. In Germany, the 50e is €45,600 cheaper than the eight-cylinder XM and €70,600 less than the XM Label.
A proper Life Cycle Impulse doesn’t appear to be planned, and a second generation seems uncertain. There have been reports suggesting that BMW may convert the XM into an electric vehicle, but for now, this remains speculative. The last time we heard, about a year ago, the model’s future was still undecided. Reports indicate the first-gen XM will be retired at the end of 2028.
In the meantime, we’re keeping an eye on other regions to see whether the V8 goes Label-only globally.
