BMW Scraps Electric XM Model Plans

What?

BMW’s plans to launch a fully electric version of the XM have been scrapped, with the model being dropped altogether. Originally expected to be known as the X8, the electric XM codenamed G79 was slated for production in 2028 at BMW’s US plant in Spartanburg, South Carolina. However, a new report citing an unnamed supply chain insider reveals that BMW has abandoned the electric XM in favor of something more aligned with its brand identity.

Why does it matter?

The decision to axe the electric XM reflects BMW’s strategic shift towards products that better resonate with its consumer base. The XM, introduced as a plug-in hybrid SUV, faced criticism for its bold styling and heavy weight. By opting to discontinue the XM and potentially refreshing the existing plug-in hybrid model until November 2028, BMW aims to realign its offerings with evolving market demands.

BMW’s focus on the upcoming 4 Series coupe, likely to be built on the Neue Klasse platform and exclusively available with electric power, signals the brand’s commitment to sustainable mobility solutions. Streamlining its coupe models into a single electric offering echoes Mercedes-Benz’s approach with the CLE, showcasing a trend towards consolidation and electrification in the luxury automotive segment.

How is it going to shape the future?

The shift away from the electric XM model underscores BMW’s responsiveness to feedback and market trends. By prioritizing electric powertrains and unifying its coupe lineup, BMW positions itself for a more streamlined and sustainable future in the automotive industry. As electric vehicles continue to gain traction, BMW’s strategic decisions reflect a broader industry movement towards electrification and cohesive product portfolios tailored to meet evolving consumer preferences.