BMW Brings Back Diesel Power: The 2018 5 Series 540d
In a strategic move that surprised industry analysts, BMW confirmed the return of diesel power to its flagship 5 Series lineup with the introduction of the 2018 BMW 540d. This announcement marks a significant commitment to diesel technology in the luxury segment, despite growing market uncertainties following the Volkswagen emissions scandal.
Key Highlights
- First diesel 5 Series since the previous-generation 535d
- Expected to feature a refined version of BMW's 3.0L turbocharged inline-six diesel
- Positioned as the most fuel-efficient variant in the 5 Series lineup
- Demonstrates BMW's continued investment in clean diesel technology
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The Diesel Renaissance in Luxury Automobiles
BMW's decision to reintroduce a diesel option in its redesigned 5 Series comes during a pivotal moment for compression-ignition engines in the North American market. While many manufacturers have retreated from diesel following increased EPA scrutiny, several premium brands continue to find success with the technology.
Jaguar Land Rover reports approximately 15% of Range Rover and Range Rover Sport sales are diesel variants, proving there remains a viable market for efficient luxury vehicles. Similarly, BMW has maintained diesel options in its 3 Series sedan and X5 SUV, though Mercedes-Benz and Fiat Chrysler faced EPA certification delays for their 2017 diesel models.
Industry experts suggest BMW's move with the 540d represents a calculated bet on diesel's ability to:
- Bridge the gap between gasoline and electric powertrains
- Deliver superior highway fuel economy for long-distance drivers
- Maintain torque-rich performance characteristics valued by enthusiasts
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Technical Specifications and Performance Expectations
While BMW has released limited official details about the 540d, automotive analysts predict it will share core components with the European-market 530d. The engine will likely be a refined version of BMW's B57 3.0-liter turbocharged inline-six diesel, potentially offering:
| Specification | Expected Range |
|---|---|
| Power Output | 260-300 hp |
| Torque | 450-520 lb-ft |
| 0-60 mph Acceleration | 5.2-5.8 seconds |
| Highway Fuel Economy | 38-42 mpg (estimated) |
The 540d will join an increasingly diverse 5 Series powertrain lineup that includes:
- Conventional gasoline variants (530i, 540i)
- The 530e iPerformance plug-in hybrid
- High-performance M550i model
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Market Positioning and Competitive Landscape
BMW's reintroduction of a diesel 5 Series creates an interesting dynamic in the executive sedan segment. The 540d will compete in a niche but profitable space between:
- Base gasoline models (prioritizing affordability)
- Plug-in hybrids (emphasizing eco-credentials)
- Performance variants (focusing on speed)
This strategic positioning allows BMW to:
- Capture buyers seeking maximum range between fill-ups
- Appeal to cost-conscious luxury consumers through lower total cost of ownership
- Maintain relevance in markets with strong diesel infrastructure
Notable competitors in this space include:
- Jaguar XF 20d (currently the most fuel-efficient luxury diesel sedan)
- Mercedes-Benz E300d (when available)
- Audi A6 TDI (discontinued but potentially returning)
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The Future of Diesel in the U.S. Market
The automotive landscape has shifted dramatically since Volkswagen's "Dieselgate" scandal, with many questioning diesel's viability in North America. However, BMW's commitment suggests there remains a business case for premium diesel vehicles, particularly when:
- Positioned as a premium alternative to hybrid systems
- Paired with advanced emissions control technology
- Marketed to specific buyer profiles (long-distance commuters, rural drivers)
Recent developments indicate a potential diesel resurgence:
- Mazda's introduction of Skyactiv-D engines
- Chevrolet's new 1.6L turbodiesel in the Equinox
- Continued strong diesel sales in full-size trucks
For BMW, the 540d represents more than just another model variant—it's a statement about the brand's engineering priorities and market expectations. As emissions standards tighten and electrification accelerates, diesel may increasingly become a specialized option rather than a volume leader.
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Why the 540d Matters for BMW Enthusiasts
Beyond the business case, the 540d holds special significance for BMW purists. The brand has a rich diesel heritage dating back to the 1980s 524td, with modern iterations offering:
- Signature BMW driving dynamics with exceptional fuel range
- Torque characteristics ideal for highway cruising
- Unique acoustic properties appreciated by diesel enthusiasts
The seventh-generation 5 Series platform, with its extensive use of lightweight materials and improved aerodynamics, provides an ideal foundation for diesel performance. Early impressions suggest the 540d will deliver:
- Class-leading refinement with near-silent idle
- Seamless power delivery through the 8-speed automatic
- Improved urea injection system for emissions compliance
