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BMW Keeps Diesel X7 40d for Europe, Not America

The second generation of the BMW X7 is reportedly set to keep a diesel engine, but the 40d xDrive variant will primarily reach European markets rather than the United States, according to unofficial information.

By Edward Beaumont · 3 min read

The second generation of the BMW X7, codenamed G67, is reportedly set to keep a diesel engine after its 2027 debut. The most likely option is the X7 40d xDrive. According to sources close to the company, the diesel is expected to go to Europe and probably to selected other markets, but there are no plans to sell this version in the United States.

The powertrain is expected to be a new 3.0-liter inline six-cylinder B57 engine. In Euro 7-compliant specification, supported by a mild-hybrid system, it is said to produce 394 hp and 760 Nm of torque. The same setup applies to the new X5 G65, whose 40d xDrive version is also not offered in America.

In August, Brendan Michel, head of product and market planning at BMW Australia, told GoAuto that the engine would remain in the X5 and X7 "for most of the next decade." He cited range as the main argument: the six-cylinder diesel in the X5 is said to cover roughly 1,200 km on the highway between refueling stops. In Europe, however, diesels have lost considerable ground. According to ACEA data, cars with this drivetrain accounted for just 6.5 percent of new registrations in the first half of the year, compared with more than half in the mid-2010s. Even so, the editors note that a heavy, seven-seat SUV often used on highways is one of the last sensible cases for a diesel engine. Back in May 2025, it was reported that the 40d variant would survive the generation change.

Earlier, CEO Oliver Zipse confirmed in March that the G67 will enter production at the Spartanburg plant in South Carolina in 2027. Unofficial information suggests production is set to start in September 2027, pointing to a summer premiere. Cars sold in the USA are expected to be designated as 2028 models. The prototypes retain split headlights and a large kidney grille, and the door handles are expected to give way to electrically opening flaps known from the new X5. Sources also say the split tailgate will disappear; within the BMW Group, the only SUV with such a design would then be the Rolls-Royce Cullinan.

The interior is expected to offer the Panoramic Vision system and iDrive X. The anticipated powertrain range includes inline six-cylinder petrol engines for most markets, the X7 40d xDrive diesel for Europe and selected countries, the X7 M60 xDrive with a twin-turbo 4.4-liter V8 designated S68, and the first fully electric iX7. A plug-in hybrid has not been mentioned in the plans.

BMW is clearly positioning the X7 further upmarket. According to reports, soft-close doors are to be standard, with automatic doors available as an option. The equipment list also reportedly includes ventilated and massaging rear seats and two-tone paint applied in Spartanburg. An ALPINA version, codenamed G69, is expected to follow later. Buyers of the diesel will therefore get a more luxurious X7, but with less power than the versions currently available in showrooms.

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Edward Beaumont

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Political Correspondent

Edward Beaumont covers public affairs, politics, business, culture and daily news for Nobel. The role focuses on verification, context, and clear explanations for readers.

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