Back to full speed after Thanksgiving. Here’s what moved in automotive this week.
BMW has begun production of the XM, its new flagship high-performance SUV built around a plug-in hybrid V8 system producing 644 horsepower in the standard configuration. The XM is a significant departure for BMW’s M division, which has historically been hesitant about applying the M badge to anything that couldn’t be justified on pure performance grounds. At $159,000 to start, with an M60 variant targeting over 730 horsepower, it’s positioned as a genuine ultra-premium performance statement rather than just a luxury family vehicle with sporty pretensions. Whether the design wins people over is a separate question from whether the performance credentials are real — and they appear to be.
Hyundai’s response to the mass theft vulnerability affecting its older models has been a software update distributed through dealerships. The update changes how the engine immobilizer interacts with the ignition system, making the social media bypass technique significantly more difficult. The challenge is distributing the update to the full population of affected vehicles — tens of millions of units — at a pace that meaningfully reduces thefts. The program has been active for several months and the data on whether theft rates are declining as penetration increases will be worth watching.
Year-end buying season is showing mixed signals. Financing conditions have gotten notably tighter as interest rates have risen, which has pushed monthly payments higher even as some vehicle prices have softened slightly. The affordability calculation that determines who can and can’t buy a new vehicle has shifted in ways that are likely to influence December sales results. The industry’s expectation for full-year 2022 sales has been revised downward multiple times from early-year projections.
Tesla’s Cybertruck has resurfaced in production preview photos and a revised timeline that pushes volume delivery toward mid-2023. The truck has been in development limbo for years, and every new timeline announcement is being received with appropriate skepticism given the history. The product itself remains genuinely interesting — if it delivers on the specs Tesla has described, it will be unlike anything else in the truck market — but Cybertruck promises have been discounted by investors and analysts for long enough that only actual deliveries will move the needle.