BMW Once Sold A 43 MPG Turbodiesel AWD Wagon In America That Everyone Forgot Existed

Nearly two decades ago, America had a short-lived infatuation with diesel passenger cars. Marques like Volkswagen were slinging enough diesels to even convince players like Mazda and General Motors to try their hands at it. Not often talked about is how BMW waded into the waters, giving North America sweet luxury rides with awesome fuel economy and even better soundtracks. One of them is the 2014 to 2018 BMW 328d, the only diesel wagon that BMW has ever sold in America, and one that’s so obscure I bet there are enthusiasts that have never heard of it.

In the 2000s, parts of the world, namely Europe and, to a smaller extent, North America, saw diesel engines as the way of the future. A well-engineered diesel back then was able to produce ridiculous stump-pulling torque but then also return shockingly good fuel economy. A common belief at the time was that diesel was also a greener fuel than gasoline. Proponents back then noted how diesel could be made in greener bio blends, that you could run some diesels off of waste oils, and that diesel touted lower CO2 emissions than equivalent gasoline engines.

The diesels of the 2000s also began to shake off a negative reputation earned in decades past. If you drove something in the 1980s that was powered by a diesel, chances are that engine was unrefined, smoky, shaky, and slow. European car manufacturers spent much of the 2000s producing a new evolution of diesel engines that ran smoothly, produced huge power, and didn’t drown out passenger cabins with clatter.

While firms like Mercedes-Benz and Volkswagen get a lot of attention for their diesels, BMW was right there, trying to inject diesel power with the same sort of spirit that you found in “The Ultimate Driving Machine.” BMW, like other automakers, also realized that diesel finally began to catch on in other markets. Volkswagen enjoyed a market almost entirely to itself in America, and BMW would join a long list of automakers to challenge Volkswagen’s diesel supremacy in America.

BMW’s diesel might never have been as popular as Volkswagen’s, but BMW might have made more tantalizing cars. One of them was the BMW 328d wagon.

The Ultimate Diesel Driving Machine

BMW was a late bloomer in the diesel game. While other European brands had been playing around with diesel power since the dawn of the automobile, BMW had avoided diesel. As one of the automaker’s press releases noted, BMW had long been obsessed with driving performance and pleasure, and old diesels didn’t really hit the spot.

However, the infamous Oil Crisis of 1973 changed that, just as it changed the rest of the automotive industry. Suddenly, as BMW admits, the efficiency of diesel engines suddenly seemed appealing.

In 1975, BMW launched a diesel development program, and early on, the automaker realized that there would be some unique challenges. BMW needed a diesel, but that diesel had to be just as responsive and just as fun as buyers expected from their products with the famous roundel on them. This first engine went into series production in 1978. However, BMW says its main debut would come in 1983 as BMW’s new diesel was bolted into the 524td, a vehicle it claimed to be the fastest diesel production car in the world.

BMW says its engineers solved some of the problems with 1970s diesel technology via swirl-chamber combustion and turbocharging. Help in developing and producing BMW’s six-cylinder diesel engine came from cooperation with Steyr-Daimler-Puch-AG.

The BMW 524td went on to become a smash hit. The sedan even crossed the Atlantic to be sold here in America during that brief diesel craze of the 1980s. BMW is also quite proud to note that the M21 engine housed in the 524td found lives in vehicles that weren’t BMWs.

M21s have found their way into the Bertone Freeclimber. Ford also liked what it saw, and in 1983, it planned to put BMW turbodiesel power in a variety of vehicles. However, in the end, the M21 ended up in only the Lincoln Continental series.

Perhaps the weirdest application of the M21 is the Vixen 21 TD, the low-slung motorhome that was supposed to be the sports car of RVs.

As BMW noted, its experiment with diesel engines in the United States market wasn’t a success, as buyers vastly preferred BMW’s gasoline offerings. Depending on who you ask, BMW sold only 3,600 524tds in America. This wasn’t so much a BMW thing as interest in diesel tapered off quickly in the 1980s as gasoline engines began getting much better fuel economy. The price of diesel also shot up in the 1980s as well. For many, paying significantly more to buy a vehicle that used more expensive fuel didn’t make much sense. So, diesel passenger cars were reduced to a niche largely reserved for weird folks buying Volkswagens and such.

Thankfully for BMW, the inverse occurred in Europe. Where diesel passenger cars failed in America, European buyers began scooping up enough diesels to make them mainstream products. BMW says that by 1986, a third of the BMW 5 Series cars sold in Germany. Eventually, the diesel became the most popular 5 Series in BMW’s lineup.

BMW Diesel Takes Off

This success proved to BMW brass that there was a future in diesel, at least in Europe, anyway. BMW responded by creating a formal development group for its diesel engines, and soon after came a naturally-aspirated version of the M21, which found its way into the 1985 BMW 324d. BMW then sort of became drunk on diesel power. The naturally-aspirated mill was offered as an option in the 524d, and then BMW sent the turbo model down into the 324td as well.

BMW would go on to advance its diesel program over the decades. In 1989, BMW worked on reducing diesel emissions by installing catalytic converters into BMW 524td and BMW 324td models. This was aided by BMW’s then-new Digital Diesel Electronics system, which BMW says was the world’s first diesel engine electronic control system. This computer controlled the injection and combustion sequence for a better burn and more consistent temperature control for reduced emissions. BMW said that this system was more or less the equivalent of the computers that fuel-injected gasoline cars had back then.

Come 1991, BMW said it refined its diesel engine concept even further, producing engines that made a little more power, but also scored better fuel economy and lower emissions. But the next real big deal for BMW came in 1998, when it launched a new four-cylinder diesel, was preparing to launch a V8 diesel for 1999, and most importantly, the development of BMW’s common-rail diesel.

BMW then explains that its 3.0-liter straight-six was the most powerful diesel engine to be fitted into a passenger car, with a rating of 184 HP and 287 lb-ft of torque. But this wouldn’t last long. Come 1999, BMW had an even more powerful engine up its sleeve. That was the 3.9-liter diesel V8 found in the BMW 740d, which made a whopping 238 HP and 368 lb-ft of torque, which BMW said was available pretty much just past idle.

BMW would go on to report massive successes with diesel engines. By 2002, more than 40 percent of all BMWs sold in Europe were powered by diesel engines. This reflected a greater trend in Europe where diesels were flying off dealership lots and were quickly becoming the dominant passenger car engine.

However, BMW notes that the rise in diesel love was happening in Europe faster than it was everywhere else. Sure, Volkswagen found a profitable niche in selling diesel passenger cars to Americans, but its sales were a drop in the bucket compared to all of the big gas V8s Americans loved rolling around in.

However, it should be noted that BMW wasn’t selling diesels in America during this time. Sales of the BMW 524 diesel ended in America in 1986. Hemmings reports that the diesels helped the automaker sell some serious firepower while maintaining a decent enough fuel economy fleet average, but America just wasn’t ready for diesel BMWs yet.

BMW Diesels Return To America

It would take BMW over 20 years to brave coming back to America. In 2003, Edmunds reported on the success of diesel around the world. In that piece, BMW noted that it didn’t have any plans on offering diesels to Americans again just yet. Instead, the automaker told Edmunds that it would consider America again if it could figure out how to make a diesel clean enough to be 50-state legal.

The wheels began turning in that direction in 2007. By now, BMW had launched another new generation of diesel engines, and this time, BMW saw that there was enough interest in diesels in North America to make taking another swing worth it. BMW explains what made these engines a better fit to take on the world:

From 2007, another generation change for diesel engines with four and six cylinders accompanied by the introduction of BMW EfficientDynamics technology facilitated an even more favourable relationship between driving pleasure and consumption. The diesel engines made a significant contribution to empowering BMW models to take over the leading role on efficiency in all relevant segments. A continuous process introduced technologies for reducing consumption and emissions to four-cylinder diesel engines followed by six-cylinder diesel models. These technologies included brake energy regeneration, shift-point display and Auto Start Stop function, alongside demand-controlled auxiliary units and electromechanical servo steering. In parallel, the efficiency of the engines was optimised once more. The new four-cylinder and six-cylinder power units shared the key attributes with a weight-optimised aluminium crankcase, turbocharger and the third generation of common-rail direct injection. Each of the two engine families were also supplied in three power levels because the most powerful version of the four-cylinder engine was now fitted with a multi-stage charging process.

In early 2008, it became official: America was getting slick BMW diesels:

At the 2008 NAIAS, the BMW 335d featuring Advanced Diesel with BluePerformance for maximum output of 265 hp and peak torque of 425 lb-ft. will provide a clear and convincing demonstration of these qualities. On the road, this means acceleration from 0-62 mph in 6.2 seconds and average fuel economy of 23/33 mpg (city/highway, provisional data).

The BMW X5 xDrive35d, will also debut in Detroit. Like the 335d, the X5 xDrive35d offers sporting character through BMW Advanced Diesel with BluePerformance, while standing out as a high-torque Sports Activity Vehicle with excellent qualities for long-distance motoring. The BMW X5 xDrive35d accelerates from 0-62 mph in just 7.2 seconds and offers average fuel economy
of at least 19/25 mpg (city/highway, provisional data).

By all accounts, these first diesel Bimmers were great. MotorTrend published article after article with glowing praise for BMW’s diesels. The publication even once published an article with the headline “BMW’s Best Six Is…A Diesel.” MotorTrend backs up the claim, too:

This engine is the third, and most powerful, version of BMW’s N57 common rail, direct injection, twin-turbo oil-burner, developing its 299 hp at 4400rpm, and a hefty 442 lb-ft of torque from just 1750 rpm. A low inertia small turbocharger delivers near instant grunt off idle, while a larger second turbocharger ensures volumetric efficiency at higher engine speeds.

Compared with the N55, the N57 delivers pure, seamless thrust right from standstill – even when you’re easy on the gas pedal – the ZF swiftly shuffling through its eight ratios. It’s perfect for the cut-and-thrust of London, where you’re constantly hustling for the smallest advantage in the traffic. The gobs of instant grunt mean rolling response on the freeway is impressive, too – just wiggle your big toe, and the 535d jumps to attention, allowing you to plug that gap in the fast moving stream of Benzes, Jags, and Range Rovers heading for the Home Counties on a Friday afternoon.

The N57 growls like a contented lion when you tickle the throttle, and there’s a slightly granular quality to the feedback from the engine room, but otherwise you lose nothing compared with the N55-powered 535i. At about 5.6 seconds the 535d’s claimed 0-60 mph time is virtually identical. More impressively, you’ll spend less at the pump, as BMW claims the 535d will return 36.3 mpg on the combined Euro cycle. We saw a best of 36.7 mpg for a 100-mile motorway run, and a worst of 23.5 mpg after 67 miles of stop-start running around the greater London area. Total consumption for our 1032 miles in the car was 30.2 mpg (all figures U.S. gallons). When a 13.8-gallon fill costs just over $120, such math is more than merely academic.

Things did get a bit weirder with the launch of the BMW 540d, which pumped out 261 HP and 457 lb-ft of torque from its 3.0-liter straight-six diesel. Things then got pretty wild with the absurdly rare BMW 740Ld xDrive, which also had a 3.0-liter straight-six diesel, but making 255 HP and 413 lb-ft of torque at just 1,500 RPM. That one is, for many, the real holy grail of BMW diesels.

BMW’s Only U.S. Modern Diesel Wagon

However, BMW did make what sounds like enthusiast bait with a diesel wagon with all-wheel drive.

In 2013, BMW announced the 328d. This new 3 Series variant featured a 2.0-liter inline-four turbodiesel. In the past, BMW’s diesels were geared more towards breathtaking performance rather than fuel economy. That’s why the original 335d was advertised as getting only as high as 33 mpg despite being a diesel.

This time, BMW sacrificed two cylinders and some horsepower, but fuel economy shot up to as high as a claimed 43 mpg highway. Now that’s more diesel-like. Power from this engine was 181 HP and 280 lb-ft of torque. This is noted to be 59 fewer ponies than a 328i gasser, but the diesel still had 22 more pounds of twist. In terms of performance, this meant a 60 mph acceleration time of around 7 seconds, or about 1.4 seconds slower than the gas version.

The 328d launched in late 2013 for the 2014 model year, and the important bit to note here is that this engine wasn’t just available in a sedan. BMW was also happy to fit the engine into the 328d wagon.

When done so, enthusiasts got a speedy diesel wagon with all-wheel drive. Sadly, it did come with an eight-speed automatic transmission, but at least it had a manual mode. It’s also notable that due to the xDrive system’s design, 60 percent of available power was sent to the rear wheels. The xDrive system was also capable of sending 100 percent of power to either axle, depending on the situation.

Reviews were mixed. MotorTrend came out of its long-term test quite pleased:

The BMW 328d wagon was easy to like when it showed up last year. It was unique in all the right ways: sharply styled, functional, and optioned to the hilt (including launch control!). Its diesel powertrain made it all the more interesting, promising better fuel economy and plentiful torque. I knew I’d like it, but over the last year and 20,000 miles, I’ve come to prefer driving the 328d over just about everything else. There’s a lot of everything else — more than 200 cars showed up to theMotor Trendgarage last year for performance testing alone. Still, I found myself constantly navigating toward this diesel-powered station wagon. That may sound strange, and I’d get funny looks when I told people it’s one of my favorite cars, but it doesn’t make it any less true.

What was the draw? There isn’t one specific thing I can call out but rather a collection of pleasant traits and clever features. The interior feels spacious, comfortable, and well-appointed. The seats and steering wheel are terrific, thanks to nice materials and bolsters placed in just the right spots. An unobtrusive head-up display provides relevant information clearly, including speed and turn-by-turn prompts from the navigation. BMW’s iDrive infotainment system works well, and I liked being able to split the main screen into two customizable displays.

Driving it was a nice experience. I found the muted clatter of the 2.0-liter turbodiesel endearing and loved the way it delivered torque: a smooth surge around 2,000 rpm that the eight-speed auto would shift around smartly, allowing me to ride the surge around town. The ride struck a nice balance between comfort and fun, the latter aided by the summer tires that came standard on the car. Those tires are just now starting to show their age, and we’d replace them if we planned on keeping the vehicle longer.

MotorTrend‘s 328d averaged 33.7 mpg, or 10 mpg better than the 328i the publication tested. Car and Driver was less complimentary:

Yet for all the squealing about the price, the diesel four-cylinder engine came in for the most complaints, on account of its lack of refinement, loudness at low speeds, and uneven power delivery. Its coarse nature came to the fore at every stoplight, as the fuel-saving automatic stop-start feature relit the engine with a pronounced shudder and audible gruffness. The engine was derided as unbefitting any vehicle in this segment, much less one with an MSRP as high as ours. Some tried to make excuses: “You don’t notice it when you’re cruising, only when you’re accelerating!” Which is, well, a lot of the time. Volkswagen, Audi, and Mercedes all offer better-behaved diesel fours, although only VW puts theirs into a proper wagon. Ordering BMW’s gasoline-powered turbo four in the wagon would eliminate the most egregious of the issues, and it would also provide the benefit of a more widely available and price-stable fuel.

The diesel engine was potent enough for everyday commuting, however, with its 280 lb-ft of torque giving a sprightly feel off the line and the launch-control program—yes, this wagon has launch control—enabling a 7.0-second final zero-to-60 run, 0.1-second quicker than when it was delivered. The engine improved a bit more at higher velocities, gaining 0.7 second to 100 mph by the end of the test. But few could forgive the diesel’s “can of gravel” racket, even as they appreciated its thrift and long range on highway cruises.

Car and Driver also had issues with its long-term tester, including an xDrive AWD transfer case failure, some interior rattles, headlamp-leveling sensor failure, and brake pad wear sensor failure. Still, Car and Driver had some things to like, complimenting the car’s highway performance and linear torque delivery. I noticed that more than one reviewer mentioned wanting to buy one of their own if they were in the market for a new car.

Based on my reading of the reviews, I think whether you would like the BMW 328d wagon or not might depend on what kind of a diesel fan you are. If you’re the kind of person who wants your diesel to be as much like a gas engine as possible, you might not like it. But if you live and breathe all things diesel, it seems you might like it. Here’s another neat review from Zack Pradel of Shooting Cars:

Going diesel with these also didn’t mean giving up on luxury options. So your BMW diesel wagon had leather seating, a heated steering wheel, heated seats for everyone in the car, headlight washers, and even an M sport adaptive suspension. You also got stuff like real aluminum trim, a 360-degree camera, and a head-up display. I would have loved to have options like those in my Volkswagen TDIs.

One of the big problems of the 328d wagon was not really its engine, but its price. The wagon started out with a price of $43,875 ($59,983 in today’s money). However, much of the fun stuff, like striking paint colors, the Harman/Kardon sound system, or the M Sport package, were all expensive options. Car and Driver kept piling on options until the magazine’s tester reached an eye-watering $59,950 ($81,960 in today’s money). I’m not sure I can be surprised at the lack of sport wagon sales in America when automakers ask buyers to pony up that much cash.

This was also a case of poor timing because BMW launched this car just as Dieselgate came to light. So, the BMW 328d might have already been a tough sell given its price, but now people didn’t even want to touch diesel anymore at all. Still, for some people, the 328d wagon is still attractive. It’s a rare German diesel wagon with a rear-biased drive! Some folks even claim to get 45 mpg in these things when they’re taking it easy on the highway.

Rare, But Not That Expensive

Speaking of that rarity, the 328d wagon appears to be a pretty uncommon unit. BMW has never released official production numbers, but these cars were hit by a recall that affects all years. So, enthusiasts estimate that there are probably around 5,553 of these in America that were produced between 2014 to 2018.

That being said, rarity doesn’t exactly equal collectible here. These have sold for under $20,000 on Bring a Trailer, which indicates some heavy depreciation for cars that could have been worth three times that when new. You can even get one for under $10,000 if you don’t mind spinning a wrench on it.

In a way, the BMW 328d was one of the last of its kind. It was a car made for a world that believed that diesel was the future. Then, once it was revealed that those “Clean Diesel” marketing campaigns were largely a sham, these BMWs became some of the last hurrahs of a dying technology. Now, new diesel passenger cars are extinct in America, and the wagon is on the endangered species list. Yet, for a short while there, it was possible to get an AWD diesel wagon from a company known for making fun cars.

Topshot: Bring a Trailer Listing.