The standard six-cylinder engine in the 3.0si is plenty strong for a family drive, while the 350-horsepower V8 in the X5 4.8i adds the punch desired by true driving enthusiasts. For 2009, there's also a diesel-powered model.. The BMW X5 was this German automaker's first entry into the luxury SUV segment. Realizing that most SUV buyers rarely, if ever, venture off-road, BMW designed the X5 for on-road performance and handling. Short overhangs, a compact size (the original was 4.5 inches shorter than the 5 Series sedan of the same time period) and a car-based chassis combined to give the X5 its low stance and superb on-road performance. The X5, produced at BMW's first American plant in Spartanburg, South Carolina, quickly became a huge hit for BMW in the U.S.