Luxury Midsize SUV Crossover

Report: BMW Preparing G-Wagen Rival

A pair of 2025 BMW X5 Silver Anniversary Edition SUVs on a grassy hillside
  • A new report says BMW is preparing a rival to the Mercedes-Benz G-Class
  • It will share many parts with the X5, but carry more off-road gear

BMW and Mercedes-Benz compete in nearly every segment of the market, like rival colleges that get worked up to face each other, whether the sport is football, basketball, or field hockey. But, until now, only one of the two has had a lacrosse progr…er…off-roader.

A new report says that’s about to change. Industry publication Automotive News reports, “BMW plans to expand its lineup with a rugged utility model to challenge the iconic Mercedes-Benz G-Wagen.”

A BMW spokesperson would not confirm or deny the plan.

AN says BMW will start building a rock-crawling SUV in South Carolina in 2029. It will share a chassis with the X5 crossover but wear more rugged looks and shorter overhangs to allow for better agility on the trail.

Traditionally focused on on-road performance, BMW dabbled in the mud with a recent Silver Anniversary Edition X5 with a mechanical locking rear differential, underbody protection plates, and an adjustable air suspension.

To truly compete with the G-Wagen, though, BMW would need to take an X5 derivative further upmarket and find a way to win it serious cultural cachet. In July, Kelley Blue Book data show, the average G-Class sold for $175,144 — well over the roughly $82,000 asking price of the 25th anniversary X5.