► BMW developing luxe, chunky 4×4
► New model will battle Land Rover, Ineos and Audi
► Will launch in 2029 as hybrid and EV
BMW is in the middle of developing a true rival to Land Rover’s Defender, Merc’s G-Class, the Ineos Grenadier and Audi’s planned off-roader. While not fully approved yet, the new model is codenamed ‘Project Rugged,’ and is expected to arrive in the second half of 2029.
The new 4×4 will almost certainly replace the polarising XM which failed to meet its sales targets. Based on the brand’s first fully flexible convergence platform, the new model offered in PHEV and EV guise aims at the sporty end of the hardcore SUV market which is currently owned by the likes of Land Rover, Mercedes, Ford and Toyota.
That’s some serious competition…
Indeed. G74 is internally referred to as ‘Project Rugged’ and as Defender rival, which suggests a somewhat less lofty price point and more road-focused character than a like-for-like G-class challenger would pursue. On the other hand, the still nameless new model will need to be more competent off the beaten track than the US-only X5 xOffroad (pictured below) which features a stacked suspension, rear diff lock, extensive underbody protection, special tyres and additional driving modes geared to cope with sand, snow and rocks but not with Moab trails or the Sahara desert.
But don’t worry – Project Rugged won’t pick up the same red thread the XM will drop. Instead, G74 aims at a forgotten segment BMW last served back in 1938 with the rudimentary AWD 4WS 325 soft-top heavyweight SUV conceived for the German army. While the first 325 sat on a ladder frame, this future X model dreamt up for future great escapes shares its basic underpinnings with the next X5, X7 and X6 which are due in 2026, 2027 and 2028 respectively.
When they broke the story, Automotive News claimed that the focus of the Bavarian neo-mud wrestler was the iconic Mercedes G-class. While the big boxy Benz is indeed an honourable target, BMW would almost certainly have to tap a trusted supplier like Magna (which it worked with on the Z4), a partner like Toyota (think Supra and its fuel cell partnership with Munich) or customers like Ineos (which is buying BMW six-cylinder engines) and JLR (purchasers of BMW’s V8) to access the best-in-class off-road hardware. After all, creating a bespoke in-house platform for a single relatively low-volume product does not look like recipe to print money.
The fact that it was awarded its own development code suggests that G74 will get its own bespoke sheet metal. Perhaps that’s a must because the fifth-generation X5 looks more like a sleek and sexy CUV than a broad and butch SUV, sporting a lower roofline, a cleaner style and a more laid-back crossover stance. It would thus clear the space for a chunkier, more upright and less glamorous go-anywhere counterpart which could be anything from a big bad stealth urban rebel to a redneck special complete with cow guard and roof-mounted spotlights.
What’s underneath the bodywork?
A new convergence platform named CLAR FX (FX is an acronym for flexible), sources say. We call it a convergence platform because this evolutionary matrix can accommodate all current petrol engines including the mighty V8, but it can alternatively also be fitted with up to four e-motors powered by a space saving cell-to-body battery pack. In contrast, rivals like Audi, Mercedes and Porsche must (during the seemingly indefinite electrification phase) continue to spend big on two separate platforms, one for EVs and one for combustion.
Engine-wise, a low-end torque petrol-fed straight six and an M version powered by the vocal and torquey V8 sounds are the logical favourites, both of course in combination with a 70-mile PHEV pack and upgraded geofencing talents. A 2.0-litre four coupled to an electric range extender for over 100 emission-free miles is waiting in the wings, but for this model such an option is said be relatively low on the priority list – unlike a batch of must-have 800-volt all-electric variants
In addition to up to three separately locking diffs and a couple extra inches of ground clearance, R&D is reportedly contemplating a low-range transfer case, rear-wheel steering and a trick height-adjustable air suspension which may work in sync with compact in-wheel motors (by DeepDrive) matched to integrated drum brakes (by Continental). It’s of course imperative to pair the off-road performance with best-in-class on-road handling, roadholding and ride characteristics.
When does Project Rugged launch?
It may already be down eight or even nine tenths of the decision-making path but, so far, Project Rugged is still not officially approved. Apart from xOffroad and the Baja-style Dune Taxi one-off which popped up in 2022, we haven’t seen a single G74 prototype or an adequately modified X5/X6 yet. If the board gives it the thumbs up towards the end of 2025, the multi-talented multi-purpose SUV will be built exclusively in Spartanburg, NC with the start of production pencilled in for the third quarter of 2029.