We’ve known for a while that BMW would tweak its V8 engine to comply with Euro 7 emissions standards. What we didn’t know, however, was that meeting these stringent regulations would require the “S68” to lose power. Starting next month, the M5 will sacrifice 40 horsepower on the combustion-engine side. The change occurs even before the new emissions and exhaust regulations come into force in 2027.
To compensate for the lost Bavarian-bred horses, M upgrades the electric motor to match the previous combined output: 717 hp. Similarly, the XM Label sticks with 737 hp, derived from a weaker twin-turbo 4.4-liter V8 and a beefier electric motor. These changes will affect both models sold across the 27 European Union member states. Additionally, it will impact the M5 and XM Label sold in other regions that adhere to EU directives.
Americans can rest assured that the balance between ICE and electric horsepower will remain unchanged. In an email to BMWBLOG, company spokesperson Jay Hanson confirmed that the M5 and XM Label sold in the United States will retain the uncorked “S68” engine.
Looking ahead, the S68 will continue to serve a wide range of models. You’ll find it under the hood of the next-generation X5 (G65) M Performance model and the full-fat X5 M (G95). It’s also slated for the X7 (G67) and the third-generation X6 in G66 M Performance and G96 M configurations.
Logic suggests BMW ALPINA will rely on the V8 for the forthcoming return of the B7 and an XB7 successor. The sedan and SUV are expected to wear different names and come with inline-six engines and electric drivetrains as well. Yes, an ALPINA EV appears to be a matter of when, not if.
Naturally, the S68 will soldier on in the M5 after the Life Cycle Impulse arrives. We’ve already spotted the updated G90 sedan and G99 wagon in spy shots, but an official debut isn’t happening this year. Production of the LCI models is reportedly scheduled to begin in July 2027, pointing to a reveal in late spring next year.
In the meantime, BMW is doing more than simply trimming horsepower from the V8 in Europe and calling it a day. The M5 and XM Label sold on the continent are adopting the Miller combustion cycle to reduce emissions and improve fuel economy, in response to the EU’s increasingly demanding regulators. Engineers are also refining the exhaust aftertreatment system and recalibrating the engine management.
We’re told the horsepower loss is fully offset by the more powerful electric motor, ensuring “continued dynamic performance at the highest level.” Still, only back-to-back comparison tests will determine whether any real-world performance has been sacrificed. Given the choice, most customers would probably want those 40 horses back. As someone who lives in Europe, I know I would. Better yet, drop the plug-in hybrid setup entirely and revert to a pure V8 gas setup… It would remove a considerable amount of weight, but surely the EU wouldn’t be thrilled about that.
