Article Summary
- Automotive News reports BMW's XM flagship is done after one generation, citing weak China demand and profitability pressure
- Our sources say a second-gen XM hasn't been ruled out, with BMW exploring design, packaging, and comfort fixes
- With the X3 M and X4 M gone, BMW still has reason to want a flagship M SUV above the X5 M in order to keep a wide lineup
A second-generation BMW XM has not been ruled out, and BMW is actively exploring the idea, despite a wave of reports today declaring the opposite. Automotive News kicked off the latest round of XM obituaries, framing the plug-in hybrid performance SUV as a flagship that BMW’s M division no longer has the appetite to justify. The outlet’s argument centers on China, where the XM was projected to account for roughly a quarter of global sales and has instead been one of the brand’s weakest performers worldwide, and on the broader profitability squeeze BMW is under as it pours money into Neue Klasse. Outlets across the industry picked up the story today and largely treated it as the final word: no facelift, no second generation, a slow fade to a November 2028 sendoff.
We are not convinced that’s the full picture. According to our own sources, a second-generation XM has not been ruled out. BMW is actively exploring the idea, and the version under consideration would apply real lessons from the first generation rather than simply carrying it over. Design, packaging, and comfort are all reportedly under review, three areas where the outgoing XM drew the most criticism from buyers and reviewers alike. We don’t have powertrain, timing, or platform details yet, and we’re not going to invent them. But the direction of travel internally is clearly not the flat no that today’s headlines suggest.
Why This Tracks With Where M’s SUV Lineup Is Headed
Look at where the rest of BMW M’s SUV range actually stands right now. The X3 M and X4 M are both gone, and there’s no replacement planned for either. Unless you’re looking for an M SUV. The unconfirmed X5 M (G95) and X6 M (G96) are rumored to return within the next years, both in electric and gasoline format. So there is still a need for a car to compete in the high-end performance luxury SUV segment, where Lamborghini Urus and Range Rover Sport SV remain some of the most in-demand vehicles their respective brands sell.
Against that backdrop, it would be strange for BMW to walk away entirely from a halo SUV positioned above the X5 M and X6 M. The first XM’s problems were never really about the concept. They were about execution, namely styling that never fully resolved itself and a ride quality that didn’t match the customers’ preferences. Fix those, and the case for a standalone M flagship SUV doesn’t look nearly as shaky as today’s coverage implies. We would also drop the plug-in hybrid and stick to the 4.4 liter V8 mild-hybrid for still lots of power, but a lot less weight.
We’ll keep digging on this one. BMW has made no official statement on the future of the XM, and neither the Automotive News report nor what we’re hearing should be treated as final until the company actually confirms a direction.
