BMW Dropping Diesel in the U.S., With an Asterisk

Steph Willems
by Steph Willems

If, like most American consumers, there’s a diesel-powered BMW on your Christmas wish list, you’d best tell your loved ones to hurry. The German automaker plans to drop that meager sliver of its U.S. product line for 2019, but there’s a chance the wishes of the oil-burning crowd will force the automaker to hang on to a single model.

During a media preview of the revamped 2019 X5 SUV, BMW spokesman Alex Schmuck told The Car Connection, “We are putting all our eggs in the PHEV basket.”

With the Environmental Protection Agency treating compression ignition vehicles like radioactive waste, it’s not a surprising move. From Volkswagen’s recent emissions scandal to General Motors’ dismal 1980s diesel experiment, Americans haven’t had the greatest experience dealing with this Eurocentric engine type (Cummins customers notwithstanding). Plug-in hybrids represent a stepping stone to the electric future the majority of automakers believe we’re barreling towards. And no one associates PHEVs with unsavory things like sooty exhaust and clattery engines.

Regardless of GM’s newfound bullishness on the fuel, diesel passenger cars are few, and the advent of electrification technology has made the engine type unnecessary from a MPG perspective — though maybe not from a development cost perspective (depending on automaker). A X5 PHEV due out in early 2020 should offer about 40 miles of electric range.

For the 2018 model year, BMW offered only the X5 35d, which no longer appears on the brand’s consumer website, and the 328d, which does. Now, what about that asterisk in the headline? Well, it seems Bimmer’s PR guy said too much, too soon.

In an email to The Car Connection, BMW wrote, “The final decision as to whether or not the BMW X5 diesel variant will come to the U.S. market has not been made. BMW of North America continues to monitor customer preferences and is prepared to adjust the product portfolio accordingly.”

[Images: BMW Group]

Steph Willems
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  • NeilM NeilM on Sep 13, 2018

    A friend of mine has an X5 diesel, and loved it right until the transfer case cracked (never off-roaded, multiple thousands of dollars fix) and the low pressure transfer fuel pump died ($700 plus installation), and, and...

    • TOTitan TOTitan on Sep 13, 2018

      Did he ever have the transfer case serviced? Ive taken mine through mud so deep it was scraping the bottom of the car with no problems. BMWs arent like Toyotas...you have to pay attention to when various wear items have timed out and replace them before they leave you stranded.

  • Padre92009 Padre92009 on Apr 23, 2019

    My wife has a 2011 335D and will not give it up. I told her I will buy her any new BMW she wants. She says nothing handles or goes like her 335D. I had her test drive the 5 series diesal but she didn't like the size. She says she will keep what she has until BMW offers something else, not likely from what I read. On the other hand her 335D could last a long time.

  • NJRide So if GM was serious about selling this why no updates for so long? Or make something truly unique instead of something that looked like a downmarket Altima?
  • Kmars2009 I rented one last fall while visiting Ohio. Not a bad car...but not a great car either. I think it needs a new version. But CUVs are King... unfortunately!
  • Ajla Remember when Cadillac introduced an entirely new V8 and proceeded to install it in only 800 cars before cancelling everything?
  • Bouzouki Cadillac (aka GM!!) made so many mistakes over the past 40 years, right up to today, one could make a MBA course of it. Others have alluded to them, there is not enough room for me to recite them in a flowing, cohesive manner.Cadillac today is literally a tarted-up Chevrolet. They are nice cars, and the "aura" of the Cadillac name still works on several (mostly female) consumers who are not car enthusiasts.The CT4 and CT5 offer superlative ride and handling, and even performance--but, it is wrapped in sheet metal that (at least I think) looks awful, with (still) sub-par interiors. They are niche cars. They are the last gasp of the Alpha platform--which I have been told by people close to it, was meant to be a Pontiac "BMW 3-series". The bankruptcy killed Pontiac, but the Alpha had been mostly engineered, so it was "Cadillac-ized" with the new "edgy" CTS styling.Most Cadillacs sold are crossovers. The most profitable "Cadillac" is the Escalade (note that GM never jack up the name on THAT!).The question posed here is rather irrelevant. NO ONE has "a blank check", because GM (any company or corporation) does not have bottomless resources.Better styling, and superlative "performance" (by that, I mean being among the best in noise, harshness, handling, performance, reliablity, quality) would cost a lot of money.Post-bankruptcy GM actually tried. No one here mentioned GM's effort to do just that: the "Omega" platform, aka CT6.The (horribly misnamed) CT6 was actually a credible Mercedes/Lexus competitor. I'm sure it cost GM a fortune to develop (the platform was unique, not shared with any other car. The top-of-the-line ORIGINAL Blackwing V8 was also unique, expensive, and ultimately...very few were sold. All of this is a LOT of money).I used to know the sales numbers, and my sense was the CT6 sold about HALF the units GM projected. More importantly, it sold about half to two thirds the volume of the S-Class (which cost a lot more in 201x)Many of your fixed cost are predicated on volume. One way to improve your business case (if the right people want to get the Green Light) is to inflate your projected volumes. This lowers the unit cost for seats, mufflers, control arms, etc, and makes the vehicle more profitable--on paper.Suppliers tool up to make the number of parts the carmaker projects. However, if the volume is less than expected, the automaker has to make up the difference.So, unfortunately, not only was the CT6 an expensive car to build, but Cadillac's weak "brand equity" limited how much GM could charge (and these were still pricey cars in 2016-18, a "base" car was ).Other than the name, the "Omega" could have marked the starting point for Cadillac to once again be the standard of the world. Other than the awful name (Fleetwood, Elegante, Paramount, even ParAMOUR would be better), and offering the basest car with a FOUR cylinder turbo on the base car (incredibly moronic!), it was very good car and a CREDIBLE Mercedes S-Class/Lexus LS400 alternative. While I cannot know if the novel aluminum body was worth the cost (very expensive and complex to build), the bragging rights were legit--a LARGE car that was lighter, but had good body rigidity. No surprise, the interior was not the best, but the gap with the big boys was as close as GM has done in the luxury sphere.Mary Barra decided that profits today and tomorrow were more important than gambling on profits in 2025 and later. Having sunk a TON of money, and even done a mid-cycle enhancement, complete with the new Blackwing engine (which copied BMW with the twin turbos nestled in the "V"!), in fall 2018 GM announced it was discontinuing the car, and closing the assembly plant it was built in. (And so you know, building different platforms on the same line is very challenging and considerably less efficient in terms of capital and labor costs than the same platform, or better yet, the same model).So now, GM is anticipating that, as the car market "goes electric" (if you can call it that--more like the Federal Government and EU and even China PUSHING electric cars), they can make electric Cadillacs that are "prestige". The Cadillac Celestique is the opening salvo--$340,000. We will see how it works out.
  • Lynn Joiner Lynn JoinerJust put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?
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