Well, it had to happen sometime... BMW, arguably the "master craftsman" of cars, finally caved in and joined the SUV rush. After all, big-time competitors Lexus and Mercedes had come up with theirs, so why couldn't they?

Of course, when you're a company like BMW, your pride keeps you true to your roots: the all-new BMW X5 is not a "Sport Utility Vehicle," according to them... (the nerve!) They prefer to call it a "Sports Activity Vehicle," thereby setting the X5 apart in a class on all its own. Well... they can wish that, anyway. Because we, as the informed consumers that we are, know better than that. In essence, the X5 fits into the already existing yet recent class of luxury wagon/SUV hybrids that are better described as raised wagons than trucks. This is what the higher echelons of our society demand: truckish ride and handling characteristics hardly suit their tastes. In addition, these upper-end vehicles see much more on-road time than not, so why create an off-road monster anyway?
Still, BMW really makes the effort to set the X5 apart: the design of the X5 is the result of years of planning and testing at Deutschland's Nurburgring race track. Why so much trouble? Because BMW's task was to give the X5 the qualities of not just any old car, but a BMW. A daunting task indeed.

It was curiosity about the X5 that drove a family friend to give the X5 a one day run. A current M3 owner and BMW aficionado, he knew about my love for writing reviews and let me tag along, and drive it for a substantial amount of time (actually, I think I forced him to!). Here are my impressions of BMW's new creation:

EXTERIOR: 8
One look at the X5 convinces you it's a BMW. The same kidney-bean grille shared with the 5 and 7-series is prominent, and aggressive wheel arches housing large 18" wheels (19" wheels optional) automatically give off the aura of a "driver's SUV," if that doesn't sound like an oxymoron. The X5 shares little else with its passenger car cousins, however: its unit body frame is completely unique. A 111" wheelbase gives this SUV (pardon me... SAV) another indication of handling prowess. Better still, an almost perfect 50/50 weight distribution contributes to a very convincing case for sure handling. However, with 7.1" of ground clearance, it wouldn't be fair to expect the handling of a Ferrari. Spaces between the spokes of the alloy wheels show off brakes of impressive size. Four rear tailpipes connected to two large mufflers give the X5 a sporty look. Put together, these observations reveal the X5 for what it is: an on-road warrior, not off.
The 2-piece rear tailgate consists of a glass liftgate and a fold-down tailgate, which is operated by a power button on the inside. I found it a bit awkward for everyday errand-running. Lexus and Benz offer easier designs.

INTERIOR: 7
In typical BMW fashion, there were many laudable interior qualites: absolutely solid workmanship, with very little gap tolerances anywhere. Real wood accents are plentiful though not overdone, and the dash controls are high and easily operated, even though they seem horizontally sprawled out. The navigation system on our model is the same one found in BMW's sedans, and seems easy to use, although I only played with it for a little while. Visibility is generally very good, although to the rear it's hindered by the rear headrests. The front seats are very comfortable and possess a huge range of adjustment. The climate control system works very efficiently and quietly. The sound system gives good bass and treble with wide ranges in both.
Clever features in the rear abound, such as climate controls, and dual power outlets for a TV or mini-fridge. I also noticed a receptacle in the headliner that is most likely for setting up a barrier when transporting pets, although I wouldn't take that risk myself ("No, Fifi! Bad dog!") The rear seat folds forward in a 60/40 split, and even has a pass-through hole in the middle for the family skis. The rear seats can electronically tilt forward to accommodate just a little bit more cargo. An ingenious feature is the roll-out loading floor. Capable of holding 330 lbs., this optional contraption ($400) makes loading and unloading rather easy.
Also worth noting are the many safety features. Optional rear side-impact airbags bring the total airbag number up to ten. The front air bags employ a two-stage mechanism that won't come out with full force if the impact isn't that bad. Tubular head protecting airbags are standard, and are a first in an SUV. An optional back-up warning system beeps if you've got something behind you.
All the above qualities are well and good, but if we were to assume the X5 will serve duty as an upper-class family hauler, there some important negtives to consider. For starters? Try relative lack of space... In the front it's just fine, but in the rear, the X5 lags a bit with its competitors in leg, head, and hip room. To illustrate: I'm 6'3", and I felt comfortable in the back, but not pampered. Fitting 3 adults there would be a squeeze. The seats are a bit low, and the wheel wells intrude slightly into the cabin. Getting into the X5 is a bit of a chore, too. In the rear, one must also be careful with the rear wheel arches as they could soil that business suit or cocktail dress. In addition, cargo space is lacking when the seats are folded up. Only about 16 cubic feet can be used without blocking the view to the rear. Even with the seats folded, maximum cargo space is a meager 55 cubic feet, which pales in comparison to Lexus and Mercedes rivals.

ENGINE: 8
The standard (and only) engine for the X5 is the same DOHC 4.4L V8 found in the 540 and 740 sedans. It gives out a muscular 282 hp (@ 5400 rpm) and 324 lb.-ft. of torque (@ 3700 rpm). The low-end torque kicks in pretty quickly to move the vehicle briskly off the line (official 0-60 in 7.5s). Passing is a no-brainer. The automatic transmission is incredibly smooth, and I especially liked the Steptronic feature that allows you to use it as a manual without a clutch- although the novelty could wear off for others.
Obvious drawbacks about the V8 are thirsty performance (13/17 MPG) and high price. The fact that X5 weighs just under 5,000 pounds and is full-time 4WD undoubtedly contribute to the gas mileage. And soon, a new in-line 3.0L 225 hp six will debut (in the X5 as well as the 3-series), and should knock a good ten grand off of the price.

RIDE: 8
BMW's hard work paid off in the ride category. It is smooth, solid, and for the most part quiet. The large tires make for some road noise at cruising speeds, and wind rush can be heard as well. But irregularities in the road are nicely muffled, including tar strips and railroad tracks.

HANDLING: 9
By SUV standards, the X5 scored very well in my book, which is why the rating here is so high. By car standards, handling of the X5 isn't as sure or fun. I only noticed a little body lean during a cloverleaf turn. Other than that, this vehicle can handle even moderate turns without a flinch. My only complaint is the steering, which feels a little stiff at parking lot speeds. Once up to speed, it's fine.
A host of equipment and thoughtful design contributes to the X5's handling abilities. The suspension system is connected to a subframe bolted solidly onto the chassis, rather than mounted separately with rubber mounts. Rear multilink load-leveling air springs prevent the X5 from sagging when full of people and cargo. The standard Dynamic Stability Control system (similar to that on the M-class) incorporates limited slip and automatic braking technology. So if a wheel begins to spin, power is allotted to the wheels with more grip AND brakes may be applied to the slipping wheel. This is good news in wet, muddy, or snowy conditions. In addition, a Hill Descent Control system automatically applies brakes and keeps speeds at 3-6 mph when activated by a button on the dash during very steep descents. Unless you live in San Francisco or the Himalayas, you might find it a bit superfluous.

RELIABILITY: ??
Because it is brand spankin' new, the X5 has no reliability record, yet BMWs are traditionally built solidly and the X5 does not seem to be an exception. Its warranty is comparable to others in this class.

VALUE: 6
Here's where the X5 falters: price. Starting at $50,000 with more options to consider, I hardly find the X5 fairly priced. It is a great vehicle, don't misunderstand me. I would love to give it 5 solid stars. But I still fail to see how BMW justifies the high sticker. In comparison, the Lexus RX300 starts around $33,000, and the M-class models start around there as well (but can get pricey).
Options like a $1000 sunroof, a $200 CD player, a $2,000 navigation system, $400 rear side-impact airbags, and the $400 loading floor bring the X5's price up considerably. A $900 Activity Package gives you heated seats. Shell out another $150 and you get a heated steering wheel. A Sport Package which gives you 19" wheels and a stiffer suspension is available for $2,500, although reviews I have read say it's not worth the money, and the suspension is a bit harsh.

THE VERDICT: CAN HARD WORK PAY OFF A BIT TOO MUCH?
The X5 has certainly connected on many of its promises, and I feel it will be a huge success. It goes head-to-head with its competitors, and if price was no object (or should I say... objection?), it would easily be my favorite pick of this class.
Counter Point: On the other hand, consider this: the BMW 540 wagon holds more cargo, handles better and costs less than the X5. Plus, the X5 is not an off-road vehicle anyway. So, if a true SUV is what you're looking for, the X5 might not be your cup of tea.
The question "why buy it?" is one you should think long and hard about. And since price usually is an object, I would at least wait until the cheaper 6-cylinder comes out.
If you are certain you want an SUV (or SAV- whatever) that's the best compromise yet of sport and utility, then why not? I say go for it. That is, if you don't mind rewarding BMW handsomely for their efforts.

AVERAGE SCORE: 7.67 out of 10
VARA'S PERSONAL RATING: 8 out of 10