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AWD BMW M5 is headed our way

Remember the rumor about the BMW M5 going all-wheel drive? Well, there's definitely some truth there because these spy shots show BMW testing the Autobahn-storming sedan with the ability to spin the front and rear wheels. Our spy shooters grew suspicious when they saw this seemingly normal-looking M5 appearing to turn all four wheels during ice testing. They checked it out and snapped these shots underneath clearly showing power routed to the front axle. While this shows that the tech is at least being tested on a current-gen M5, all-wheel drive is probably not coming until the next 5 Series model, which is already being evaluated. The idea of power going to the front and rear axles for this sport sedan might polarize some hardcore brand fans as a break with tradition. However, the head of the M division thinks the change is a priority to actually put torque down effectively. The future vehicle is slated to get at least 600 horsepower and pack it into a lighter platform. Rear-drive M5 purists can take heart, though. The all-wheel-drive system would reportedly be an option, and it would be rear-biased to still let drivers hang the tail out, if the desire arises.

Macron hosts BMW and Volvo execs as they consider moving operations to the U.S.

PARIS — French President Emmanuel Macron on Monday will host a dinner with a number of European chief executives to convince them not to move production to the United States, where lower energy prices and the Inflation Reduction Act is proving a lure. European leaders have been alarmed by massive anti-inflation measures passed by Joe Biden's administration, which make tax breaks conditional on U.S-manufactured content and which EU industries say make investment in Europe less competitive. "We're having difficulties with companies which are starting to consider offshoring their production or making future investment outside Europe," a French official said, listing high energy costs and the U.S. legislation as reasons. At the Elysee palace, Macron will seek to convince executives from companies including chemical groups Solvay and Air Liquide, carmakers Volvo and BMW, pharmaceutical giant AstraZeneca and telecom groups Ericsson and Orange to stay in Europe and choose France for their future investments. Macron, who has called on the European Union to launch its own 'European Buy Act' to subsidise European production, has encountered resistance from the more anti-protectionist members of the bloc. It was unclear what Macron would tell the executives to convince them not to move to the U.S. But France has unveiled a number of measures over the weekend to cushion the impact of high energy bills for French companies. European companies have been increasingly strident about the impact of soaring energy prices since Russia's invasion of Ukraine, which has pushed up gas and electricity prices. Eric Trappier, CEO of Dassault Aviation, who heads the French federation of metals industries, warned in the Les Echos newspaper over the weekend that Europe should protect its own industry more aggressively or see it move to other shores. Related video: Government/Legal Green Plants/Manufacturing BMW Volvo

Will global automakers drop local JV partners if China's government says they can?

Chinese economic policies could be in for a big change, as President Xi Jinping pushes the communist country to open its domestic markets even further. That could mean big things for the auto industry, especially when it comes to the country's far-reaching joint-venture system.
According to Chinese law, foreign automakers may only maintain a fifty-fifty partnership with their domestic counterparts. But with Jinping's push for openness leading to potential free-trade deals, that policy could be relaxed (or eradicated all together) in short order. What's an automaker to do?
Well, in BMW's case, stay the course. Automotive News Europe reports that, despite the grumblings about the JV policy changes, the German manufacturer has resigned its agreement with Brilliance through 2028. This is made doubly remarkable by the fact that BMW signed the extension over three years before it was set to expire.