BMW is expected to drop niche models from its lineup, including the large XM plug-in hybrid and the 8 Series, as the Munich car manufacturer seeks to reduce costs while rolling out the Neue Klasse technology platform across some 40 models by the end of 2027.
BMW Group’s new CEO, Milan Nedeljkovic, is reviewing BMW’s model strategy amid the automaker’s broader cost cuts. The review affects niche models, derivatives and powertrain variants. BMW has already dropped the Z4 roadster, with production ending earlier this year and no direct successor planned.
The 8 Series luxury coupe is also headed for retirement. Speculation circulated that BMW could revive it under the Alpina brand after acquiring the luxury marque in January, but the automaker dismissed the idea internally. The current car’s underlying technology is about eight years old and a straightforward transfer into the Neue Klasse world is not feasible, a BMW spokesperson said.
The XM faces a different problem. BMW created the plug-in hybrid performance SUV as a flagship for its M division, giving the brand a standalone vehicle designed to showcase its performance credentials. Weak demand for the XM in China and mounting pressure on profitability make it harder to justify such a resource-intensive niche model.
We already discussed the fate of the current i4. There’s a good chance it will live on in niche models like the i4 Coupe and i4 Convertible, but BMW sees no future for the current Gran Coupe sedan model, as it introduces the new i3, based on the Neue Klasse platform.
Other parts of the lineup are also shrinking. The X4 is being phased out at BMW’s U.S. plant in Spartanburg, South Carolina, while the 2 Series Active Tourer looks increasingly out of place as BMW shifts resources toward its more profitable SUV range, particularly the X1 and X2.
Long-standing strategy remains
The review does not signal an end to BMW’s long-standing strategy of offering a broad range of variants, insiders say. Instead, it reflects a more selective approach. As the move to implement Neue Klasse technology reshapes the company, BMW aims to reduce complexity where it mainly serves tradition rather than future business needs.
Going forward, a model’s place in the lineup will depend less on its history and more on whether it can deliver sufficient demand, profitability and technological relevance in the markets where BMW chooses to sell it. A model that makes sense in China may become less attractive in Europe; what remains profitable in the U.S. does not necessarily have to be continued globally.
The approach differs from that of Mercedes-Benz and Audi. Mercedes is more heavily localizing within its brand architecture, while Audi is pursuing separate technology and brand paths in China. BMW is seeking a middle ground: global premium DNA, but a sharper local selection of what is needed, and what customers are willing to pay for, in each market.
