The BMW Sports Car Outselling Its Flagship M Car

Few vehicles are as hallowed as the BMW M1, so when BMW announced it was producing a new model under the legendary M brand for the first time since 1981, our minds raced with dreams of mid-engine supercars that would once again redefine the company. However, the model we received was, to put it plainly, a disappointment. The BMW XM isn’t a bad vehicle, just a poor M car, despite its astounding performance, especially in its Label Red trim.

However, it fails to embody the core tenants that BMW’s M division has always stood for, and its gaudy design simply feels out of touch. However, don’t just take our word for it. All you need to see is the SUV’s sales to understand that the model has been a disappointment, one so bad that it was outsold by BMW’s seven-year-old roadster, the Z4. While this could be chalked up to their price difference, we believe it signifies a shift in buying tastes, one we hope automakers like BMW are willing to embrace.

The BMW XM launched with serious ambitions despite being mismatched from the start. The model was never initially intended as a standalone M vehicle. Instead, the idea was that the model would debut as the X8 and raise the bar for the brand’s SUV luxury and performance. On this front, the SUV is excellent, delivering the driving experience and comfort one expects when paying nearly $200,000.

However, the brand pivoted when the pandemic hit in 2020. The supercar it was planning under the M brand, dubbed the iM, was deemed too risky at a time when automakers were shutting down production lines, and the decision was instead made to reposition the X8 as a type of super SUV under the M brand due to the growing popularity in performance family haulers. Oh, how we wish we could have sat in on the meeting where they made that decision.

Related

Driven: 2023 BMW XM Excels At Luxury, But Disappoints As An M Car

It’s comfy, but there are several other BMWs you’d be better off buying.

We received the fruits of their labor in 2023 as the BMW XM, a plug-in hybrid SUV that features a twin-turbo V8 with electric assist, the same powertrain now found in the M5. 644 horsepower is standard, but this punches up to 738 in the Label Red trim, and it can travel about 30 miles on electric power alone. Styling was controversial, with a new massive iteration of the kidney grille and massive slab siding, and it was large, announcing its presence regardless of where you were going. Priced at around $160,000, the company was convinced a smaller but dedicated subset of the ultra-wealthy would line up for a chance to buy the next M model.

But this didn’t materialize. In 2024, BMW sold just 7,813 XMs worldwide. In the US, arguably the most insatiable SUV market on the planet, only 1,974 units found homes, a 14.7% drop from 2023. Meanwhile, the BMW Z4, the brand’s often-forgotten roadster, moved 10,482 units globally in the same period, 2,129 of which were in the US. This was actually an increase of 13.1% over 2023, showing a growing number of customers are becoming interested in what could be the brand’s last, fully combustion sports car.

BMW’s Roadster Is Underrated

The current G29 generation Z4 has lived in the shadows of BMW’s more conventional coupe and sedan models in recent years, especially because it has never offered a full-fledged M variant like previous generations. However, this doesn’t mean the current Z4 is a poor sports car; in fact, it’s likely the most underrated model in the brand’s lineup.

No electrification here, just good old combustion goodness split between a turbocharged four-cylinder powerplant making 255 horsepower and the brand’s modern-day classic B58 turbocharged inline-six making 382 horsepower. For a while, the model could only be had with an 8-speed automatic, which made daily driving a breeze and the quickest launches a cinch, but the company made the wise decision of adding a 6-speed manual (perhaps due to some convincing from Toyota with the Supra), that only comes in the optional $3,500 Handschalter Package on the M40i model.

The package completely transforms the car, giving it poise, suspension dampening, and breaking power that essentially turns the car from a mediocre model into the sports car it always should have been. Along with the comfortable and no-nonsense interior and great exterior colors, the vehicle has quietly turned into a model that has been returning rave reviews.

Yes, we still wish the company would have released a full-blown M version with an S58 under the hood, but the current Z4 isn’t trying to be a full-blown M car, and that’s exactly why it works. It’s fun and focused, continuing a legacy that’s decades in the making.

It’s One Of The Brand’s All-Time Greats

Of course, this really shouldn’t come as a surprise, because BMW’s roadster has had the right idea going back to the BMW Z3 that arrived in 1996. The company was spurred on by the success of other small roadsters like the Miata and envisioned a roadster that would be small, light, and attractive, while still retaining that classic BMW character. It was a hit, spawning the powerful Z3M and even the unconventional Z3 Coupe that’s become a cult classic today.

Related

All The Reasons Why BMW’s Oddest Coupe Is An Icon

BMW’s Z3 Coupe holds a special place in many enthusiasts’ hearts for a reason.

The Z4 nameplate arrived with the E85 Z4 in 2003 when the vehicle grew in size, comfort, and performance. Again, a Coupe and Roadster variant was produced, but the model still retained much of the raw character of the previous Z3 in a nicer package. The next generation that arrived in 2009 saw the roadster and coupe turn into a singular model with a hardtop, and while it was good-looking, it lost some of the rawness of the previous models, becoming a bit more comfortable and positioned more like a GT.

Related

The $30,000 Sports Roadster That Will Make You Feel Like A Million Bucks

With so many sports cars on the used market, it can be tough to find that special one. This relative bargain could be the one for you though.

This leads us to the Z4 of today, a model that all but felt like an afterthought until recently. It wasn’t bad, just a bit uncompelling when compared to rivals like the Boxster, but BMW may have finally found a way to make it work just in time for the nameplate to be discontinued as the company focuses on the rest of its lineup.

It May Not Be Long For This World

Unfortunately, despite the Z4’s newfound success, it’s likely the model is going to end up in the same boat as the BMW XM. Rumors swirled last year that BMW was planning to end production of the XM in just three years, with no plans for a successor due to the model’s poor sales. Initially, the company was hoping a fully electric second generation would follow, but now it’s looking like that won’t happen.

At the same time, the company is planning to end production of the Z4 next year, again with no successor in sight. It’s rapidly moving toward electrification, with its Neue Klasse models right around the corner, and small, gas-powered, low-volume sports cars are the definition of expendable. Yeah, it’s selling better than the XM, but that’s essentially putting the bar on the ground, and BMW can’t afford to throw money at a niche vehicle like this when tariffs are only going to make it more expensive.

Related

How Toyota Can Save The Supra If The BMW Z4 Is Killed Off

The BMW Z4 is being laid to rest. While it might not affect the Toyota GR Supra, if it does, this is what Toyota could do to save the GR Supra.

However, it’s a good sign that sales of the model have increased noticeably, because it means there’s a growing demand for cars that prioritize driving pleasure over sheer spec sheet dominance. This is why electric vehicle sales are down, because when every vehicle can shoot to 60 mph in the blink of an eye, is it really even cool anymore? Consumers are showing they want a vehicle that makes them feel something, and some automakers are listening, but we’ll have to see if these shifts will have a wider-reaching effect, or if they come too little, too late.

Source: BMW