For years, BMW appeared intent on occupying virtually every conceivable niche. It is now preparing to move in the opposite direction. The German brand is reviewing its line-up, and several BMW models could vanish over the next few years.
The irony is that this downsizing is taking place just as BMW is readying more than 40 new or updated models by 2027. All will use technologies derived from the Neue Klasse, in what represents one of the manufacturer’s most significant technological transformations.
According to Automotive News Europe, the group’s chief executive, Milan Nedeljkovic, is assessing niche models, derivatives and even certain powertrains. This forms part of a broader cost-cutting programme that also includes the voluntary departure of several thousand employees.
8 Series set to leave and XM at risk
In some cases, the outcome appears almost inevitable. The BMW 8 Series is expected to be discontinued at the end of its current generation, after the possibility of reviving it under the Alpina brand was also ruled out internally.
The reasoning is largely technological. The current 8 Series platform is around eight years old and, according to a BMW spokesperson quoted by the publication, cannot feasibly be adapted directly for the Neue Klasse’s new technological environment.
The BMW XM is also under pressure. Developed as an exclusive M division model rather than a derivative of another BMW, the plug-in hybrid SUV was intended to serve as a showcase for the brand’s technology and performance.
However, weaker-than-expected sales in China and growing pressure on margins are making it increasingly difficult to justify a niche vehicle that is so costly to develop and manufacture.
Even the BMW i4 could be discontinued
The BMW i4’s situation is more surprising. The electric saloon, built in Munich since 2021, has been among the models driving growth in the brand’s EV sales, yet it could become a casualty of BMW’s own successful strategy.
The issue is called the BMW i3. The new electric saloon based on Neue Klasse technology sits very close to the i4 in the range, raising the question of whether it makes sense for BMW to retain two electric saloons competing for almost the same customer.
For now, no official decision has been made on the i4. Nevertheless, the fact that its future is being discussed at all illustrates how far this rationalisation could go.
Z4 has already gone and X4 is also on its way out
The line-up reduction has, in fact, already begun. Z4 production ended this year, with no direct replacement planned. The combustion-powered X4 is also being gradually withdrawn from production at the Spartanburg plant in the United States. Its role is expected to be taken by the all-electric iX4.
Another vehicle whose place is becoming increasingly hard for the manufacturer to justify is the 2 Series Active Tourer. At a time when BMW is concentrating its resources on more profitable SUVs, the compact MPV has become an increasingly rare species within the range.
Fewer models to manage more technology
Behind these decisions lies an investment of more than €10 billion in the Neue Klasse and a new electronic architecture based on centralised computing.
Introducing this technology within such a short timeframe requires BMW to develop, industrialise and market a high number of cars simultaneously. The more complex the range becomes, the more expensive that task is.
This does not mean BMW will abandon its strategy of offering numerous versions and powertrains, as the Volkswagen Group is planning to do. However, a model will be less likely to remain in the range simply because of tradition or because it occupies a particular niche.
Sales, profitability and technological relevance will carry greater weight, and may even determine whether certain BMW models remain available in one market while disappearing from another. In other words, the range may become shorter, but that does not necessarily mean it will be easier to follow.
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