BMW reportedly planning to phase out the 644-hp XM

Arguably the most visually challenged sport utility vehicle in BMW’s lineup, the XM is available in two variants in the U.S. and three variants in select markets. By summer 2025, the mid-range XM could be discontinued, leaving only the larger Label model and the disappointing 50e to hold out.

BMWBLOG isn’t exactly surprised by this decision, which the Bavarian automaker didn’t confirm or deny until August 2024. As the publication cited states, BMW is unlikely to displace the XM, with global sales of around 3,800 units in the first half of 2024. In other words, BMW’s most powerful production vehicle to date is selling worse than the iX.

In the United States, the plug-in hybrid sport utility vehicle sold 1,078 units in the first six months of 2024, down -7.9% from the first half of 2023. By comparison, the zero-emission sport utility vehicle is listed with 6,490 and 6,486 deliveries, respectively.

The XM, which will continue in production until November 2027, was unveiled in September 2022 for the 2023 model year. Series production began in December 2022 at the BMW Group plant in Spartanburg, South Carolina, with the first version produced there producing 644 horsepower.

The Label, formerly called Label Red, steps up to 738 horsepower. As for the 50e that America doesn’t have and never will have, 469 ponies will have to do from an electrified six-cylinder. The second production vehicle developed entirely by the M division, the XM isn’t even a true M when equipped with the aforementioned straight-six.

New 2023 BMW XM

Photo: BMW

You see, opting for the 50e means getting the B58 engine instead of the M-specific S58, which is sure to irk enthusiasts. Then again, the M division has made this mistake in the past. The 1 Series M Coupe, for example, uses the N54, which has no equivalent M-developed twin. There's also the N55 from the first-generation M2 Coupe, an engine that was dropped in favor of the S55 for the more powerful M2 Competition and M2 CS.

Adding to the confusion, BMW first introduced the XM’s S68 engine in the X7 M60i, which is an M Performance vehicle rather than a true M. The successor to the S63 twin-turbo V8 also powers the 760i xDrive, as well as the X5 M60i and X6 M60i. The latest applications come in the form of the M5 Sedan and M5 Touring, both rated at 717 horsepower and 738 pound-feet (1,000 newton meters) of torque.

The torque peak also applies to the XM Label, which is considerably heavier than the unwieldy M5 Touring. For the North American market, BMW quotes 5,530 pounds (2,508 kilograms) for the wagon-bodied thriller compared to 6,062 pounds (2,750 kilograms) for the fearsome XM Label.

By the way, $185K before shipping is what the German automaker is asking for the XM Label. For comparison, the 644-horsepower XM is $159,000 for the 2025 model year. Codenamed G09, the XM is available with a six-cylinder in its home country of Germany, where the 50e starts at €132,400 compared to €178,000 for the XM and €203,000 for the top-of-the-line Label.

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