AUTONEWS

The BMW XM has a $22,000 discount, but sales still don't take off in the US

The BMW XM has a curious history, as it was designed by BMW M, the sports model division of the German brand. Previously, this department produced the impressive M1 coupe, in collaboration with Lamborghini and combining a tubular chassis designed by Dallara, a body designed by Giugiaro and a 3.5 inline six-cylinder engine with 277 hp, which allowed the sports car to reach 265 km/h. The M1, of which only 453 units were manufactured between 1978 and 1981, served as the basis for the Procar BMW M1 Championship, a competition that accompanied the F1 World Championship season in 1979 and 1980, with Niki Lauda winning the first year and Nelson Piquet the second.

After the success of the M1 — not in terms of sales volume, but in terms of image — the brand decided to once again trust BMW M with the design of the next model, having decided that it would be a large SUV with aggressive lines and manufactured in Spartanburg, USA. But everything indicates that XM's methods never won the hearts (or wallets) of potential customers. In 2024, North Americans purchased just a mere 1,974 units, 14.7% less than the previous year, and outside the US, Europe included, the result was not much better. The XM sold just 7,813 units worldwide during 2024, making it BMW's lowest-selling model globally, and in the US in particular.

The low sales volume comes despite BMW pumping a generous amount of money into the XM, with $5,000 in incentives plus $15,000 in rebates totaling $20,000 for customers who opt for financing or pay cash.

Last year, it was revealed that BMW killed off a successor to the fabled M1 that was 95% complete to launch the XM, a high-powered hybrid SUV it inevitably thought would sell in strong numbers. However, the carmaker might be regretting this decision due to poor sales of the XM, particularly in the United States, where it should have proven popular. However, there is good news for those in the market for a new XM, however few that may be.

A bulletin recently sent to BMW dealers in the US reveals the XM is now eligible for $5,000 in loyalty or conquest cash for new buyers. While $5,000 isn’t a huge amount for an SUV that starts at around $160,000, this offer can be combined with other discounts, meaning shoppers could save up to $20,000 if they buy or $22,500 if they lease an XM.

As reported by Cars Direct, BMW offers a $15,000 discount for those financing an XM or paying in cash, bringing the savings up to $20,000 when combined with the $5,000 incentive. The discount increases to $17,500 for those who lease an XM, bringing the savings up to $22,500.

Importantly, these figures are only applicable to the 2024 model, which is understood to have low inventory in the United States. That means customers will probably need to dig a little if they want to get behind the wheel of an XM and save some money in the process.

The 2025 BMW XM is also available with a $12,500 credit, bringing its starting price down quite a bit. While we’ve become somewhat accustomed to BMW offering discounts on the XM, it’s unusual for brand-new models from the M division to be offered with one. The German brand is looking for any way to sell the XM, and it seems to be having a hard time doing so. Last year, just 1,974 examples of the flagship Bavarian SUV were sold across the United States.

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