BMW has officially ended production of the standard XM SUV with a V8 engine in both the United States and Europe. Going forward, the model will only be available as the high-performance XM Label. This change will begin with the 2026 model year.
The decision follows earlier rumors that the standard XM would be phased out. The regular plug-in hybrid version offered 644 horsepower. Now, buyers must choose the more powerful XM Label, which delivers 738 horsepower. This makes it the most powerful production vehicle in BMW’s lineup, just ahead of the 717-hp M5.
BMW has not yet released pricing details for the 2026 XM Label. Previously, the standard XM started at $161,425, including a $1,175 destination fee. The XM Label had a much higher starting price of $186,700—more than $25,000 above the base model. Unless BMW adjusts pricing, buyers may have to spend significantly more to get into the XM lineup. That could make the vehicle, already a controversial model, even harder to sell.
In Europe, there is also a third version called the XM 50e. This model does not come with a V8 engine. Instead of the 4.4-liter twin-turbo V8 (known as the S68), it uses a 3.0-liter inline-six engine (B58). This version is a plug-in hybrid too, but lacks the traditional performance expected from an M model. BMW chose not to sell the XM 50e in the U.S., but if it had, it may have attracted more buyers due to its lower cost. In Germany, the 50e is €45,600 cheaper than the standard V8 XM and €70,600 less than the XM Label.
BMW has not announced any major updates, known as a Life Cycle Impulse, for the current XM. A second-generation model also seems unlikely at this point. Some reports suggest BMW may turn the XM into a fully electric vehicle in the future, but nothing is confirmed. As of the last update, the company had not made a final decision on the XM’s long-term future. Current information indicates that production of the first-generation XM will end in 2028.
For now, it remains to be seen whether the V8 version of the XM will be limited to the Label trim in all global markets.
