BMW X5: Premium, Practical, Powerful

Do luxury automakers really need to be in the CUV business?

Simply put, yes.

Not much to look at but loaded with space for growing families, the CUV has become a cash cow for premium automakers – hence Bentley, Jaguar, Maserati and Lamborghini on the verge of getting into the game.

CUVs are among the best-selling vehicles for Mercedes-Benz, BMW, Lexus, Cadillac and, surprisingly, Porsche.

Could the premium German sports car maker have survived without the Cayenne? It makes up 40% of the brand’s U.S. sales (7,413 units through May), according to WardsAuto data, and is popular in China. The Cayenne outsells every other Porsche nameplate in the U.S. by a wide margin.

CUVs have become for luxury brands what pickup trucks are for the Detroit Three – essential. Exterior styling is not a major selling point for fullsize pickups, and yet three of them ranked among the six best-selling light vehicles in the U.S. in May.

The rising popularity of the luxury CUV demonstrates an important evolution among deep-pocketed consumers, who basically had two car flavors to choose from not long ago: They could opt for sporty good looks or sophisticated comfort.

The BMW X5, Mercedes M-Class and Lexus RX, which together ignited a new segment some 15 years ago, were a little of both, but bigger and more practical. The first batch of these lux-utes was trucky, awkwardly upright and lacked personality.

But each model redesign – along with the arrival of additional brands – found these vehicles growing comfortable in their own skin.

The new third-generation ’14 X5, which launched last fall, is a prime example. Relative to the prior model, the new CUV appears more wedge-like and benefits from a slightly lower roof and an amazingly short front overhang, and its sheet metal is deeply drawn.

Straight character lines have been replaced with ones that ebb and flow, particularly on the liftgate and surrounding the taillamps.

The front end of the previous model was disjointed, suffering from a perfectly horizontal line that left the lower fascia detached from the grille and headlights. The new front end is styled with emotion – without any horizontal separation – and the pinched headlamps convey more anger and tension. The X5 has a powerful presence.

The flowing aesthetic carries into the cabin, where familiar BMW interior styling cues and instrumentation layout are freshened up with more metallic trim, accent stitching and the availability of three new upholstery colors and a larger, brighter central display screen.

X5 Longer, Wider, Yet Lighter

Occupants sit higher than in the previous model, and there’s more cargo space. A third row remains available, and it’s still uncomfortable for most average-size adults.

The CUV is longer and wider, which explains the additional room for shoulders, legs and heads. The only loss of space comes in backseat headroom.

Seat stitching was straight-line simple in the old model but now exhibits swoopy flair. Front seats also are more properly bolstered for better support.

The cabin scored highly in the 2014 Ward’s 10 Best Interiors competition for its ability to be sporty, soothing, luxurious and completely functional, all at the same time. Build quality was first-rate in several models reviewed from BMW’s plant in Spartanburg, SC.

Especially impressive is the X5’s use of ambient lighting, both white and orange, cascading from footwells, map pockets and horizontal light bars running along the instrument panel and doors.

Also available is a new Night Vision system that uses a front-mounted infrared thermal imaging camera to distinguish between humans and animals by the level of heat emitted.

When the system anticipates a potential collision with an animal, lights will flash at it. Meanwhile, the instrument display will flash the symbol of a deer, and an acoustic warning will sound.

The X5 always has been among the most mechanically sound luxury CUVs, and the new model carries on the tradition.

Three excellent engines are available: a new 450-hp 4.4L twin-turbo (codename N63) V-8, the 300-hp 3.0L twin-scroll turbocharged (N55) inline-6 and the 255-hp 3.0L turbodiesel (N57) I-6.

The 3.0L gasoline engine earned Ward’s 10 Best Engines trophies from 2011 to 2013, and the 3.0L diesel won this year, driven in the 535d sedan. The V-8 does not qualify for the competition, appearing in vehicles that exceed the $60,000 price cap.

All three engines are superb. Fuel economy likely will be best with the diesel for road trips, but overall mileage often will be better with the N55 I-6. In recent months, WardsAuto editors have approached 30 mpg (7.8 L/100 km) while driving the X5 with the N55 – darn good for a 7-passenger vehicle.

Diesel Price Premium Cut Significantly

The price premium for the X5’s diesel engine has dropped by more than half, to $1,500, compared with the 6-cyl. gasoline offering. The diesel take-rate in the U.S. was 25% in the previous X5, and the automaker expects that percentage to grow. Still, the gasoline I-6 will dominate sales.

BMW has done well in smoothing out the function of the stop/start system, which helps reduce fuel consumption. But still maddening is the confusing message that appears on the instrument panel when stop/start is shut off, but appears to be on, and vice versa. Please fix this, Bavaria.

Like X5s of the past, all-wheel drive is standard, but a rear-drive model now is available. A 6-speed automatic transmission was available previously, but now all models are standard with a smooth-shifting 8-speed automatic.

Driving dynamics remain excellent, aided by responsive electric power steering and the loss of 170 lbs. (77 kg) of curb weight – impressive given the extra length and interior space. Suspension stiffness, steering characteristics and accelerator response all can be adjusted to personal preference.

There are lots of other interesting features, such as the crystal-clear head-up display, Dynamic Performance Control, 360-degree Surround View camera technology, stop-and-go adaptive cruise control, Bang & Olufsen audio and new ways to customize trim both inside and out.

The new X5 is off to a strong start, but sales through the first quarter have lagged the Acura RDX, BMW X3, Cadillac SRX, Lexus RX and Mercedes ML, according to WardsAuto data.

Since its arrival in 1999, the X5 has mustered 524,915 deliveries in the U.S., compared with 620,311 for the M-Class, which arrived in 1997. The RX launched in March 1998 and remains a juggernaut, reaching nearly 1.5 million sales.

Both BMW and Mercedes have some work to do.

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'14 BMW X5 xDrive35i Specifications