BMW's long-rumored off-road SUV, intended to compete with the Mercedes-Benz G-Class, has not been greenlit and its development has stalled, according to multiple reports citing anonymous sources. One report adds that the project may have been halted due to low projected sales.
The project, internally codenamed 'G74', has not made it past final approval and development has not yet begun. Originally slated for an all-electric architecture, the vehicle was later changed to the same platform as the new BMW X5, adding a plug-in hybrid option.
BMW has never publicly acknowledged the off-road SUV. The rumored model was expected to arrive as early as 2029 and be built in Spartanburg, South Carolina. It was to be based on the latest BMW X5 and potentially replace the slow-selling XM. Reports indicated it would compete with the Rivian R1S, Range Rover, and Mercedes-Benz G-Class.
BMW has never built a true off-road SUV before, though it offered an xOffroad package on the X7 and X5 Silver Anniversary Edition. The automaker has discontinued niche models like the 3 Series Gran Turismo, 3 Series Sport Wagon, 4 Series Gran Coupe, and 8 Series coupe/convertible.
Despite the stalled project, BMW's sales are in very good shape, with record sales in the US. BMW M CEO Frank van Meel indicated openness to a rugged high-performance SUV, citing the Dakar rally as a reason such a model would not be a contradiction. The Alpina sub-brand could also spawn a flagship SUV based on the X7 with off-road capability.
The off-road SUV project is not entirely dead and could still receive the green light. Meanwhile, BMW intends to cut several thousand jobs in Germany by the end of 2027 through a voluntary buyout program, citing headwinds in China and a need to cut costs amid geopolitical and supply challenges.