Earlier this week, we reported on catastrophic sales of the Fiat 500e, which are bad enough that Stellantis has extended its existing production shutdown at the plant where the model is produced.
That EV is a model sold at a “reasonable” price. At the other end of the automotive spectrum, BMW is experiencing the same issue with its XM SUV. That plug-in hybrid performance SUV is priced quite a bit higher than the little Fiat. But its sales are equally catastrophic.
See: 2023 BMW XM Review: Wolf in Sheep's Clothing
Sales: from bad to worse
Sales have been anemic for the BMW XM since production began in December 2022. Certainly the performance-oriented SUV, created as a unique product of the M division, has not met the company's expectations. This trend worsened in the third quarter of this year, when BMW sold just 307 units, down 30.7 percent on the same quarter last year, when it sold 443 of them.
To be clear, the XM isn't the only BMW model that's selling less these days. There's the Z4, though the fate of coupes seems to be the same across the industry. But even the 3 Series saw sales drop by 13.7 percent last quarter, compared with the same period last year.
Above all, a pricing problem
In the case of the XM, the main problem is likely due to pricing. The offer starts at $220,000 CAD with this model. Per se, in this price range, buyers are not likely to back away from such a price tag. But in this case, buyers entering a BMW dealership can walk away with a high-performance X5 or X7 for half the price, if that.
Having driven the XM, we can certainly confirm that the machine is impressive with its maximum power of 738 hp and as many lb-ft of torque. But an X5 M (cost: $142,500) offers 617 hp, while an X7 M60i delivers 523 horses for about $142,000.
And when it comes to luxury, BMW’s “cheaper” models have as much to offer as the XM. That, in a nutshell, explains the XM's predicament.
And then there's the styling, which isn't universally appreciated, but that's another story.
Original content from auto123.
