BMW's first SUV, the X5, was introduced in 1999. The X5 was a large departure from BMW's image of sporting "driver’s cars", however, it was very successful and resulted in other SUVs being introduced, such as the smaller X3 in 2003.
The 2001 E65 7 Series was BMW's first model to use a 6-speed automatic transmission and the iDrive infotainment system. The E65 also attracted controversy for its exterior styling.
In 2002, the Z4 two-seat coupe/convertible replaced the Z3. In 2004, the 1 Series hatchbacks replaced the 3 Series Compact models as BMW's entry-level models.
2003 Rolls-Royce Phantom was the first Rolls-Royce vehicle produced under BMW ownership. This was the end result of complicated contractual negotiations that began in 1998 when Rolls-Royce plc licensed use of the Rolls-Royce name and logo to BMW, but Vickers sold the remaining elements of Rolls-Royce Motor Cars to Volkswagen. In addition, BMW had supplied Rolls-Royce with engines since 1998 for use in the Rolls-Royce Silver Seraph.
In 2005, BMW's first V10 engine was introduced in the M5 model of the E60 5 Series range. The E60 platform was also used for the E63/E64 6 Series, which reintroduced the 6 Series models after a hiatus of 14 years.
E53 X5 (1999-2006)
E65 7 Series (2001-2008) with controversial rear-end styling
