Preliminary reports in August were that BMW was cancelling its full-size BMW X7 SUV, and those reports have now been substantiated in an interview with BMW CEO Norbert Reithofer. The final decision to abandon the BMW X7 was made in response to BMW's slimming profits, declining consumer demand, and new emissions and fuel-economy standards being implemented in BMW's primary markets in North America and Europe. The X7 was set to compete directly with premium SUVs such as the Range Rover and Mercedes-Benz's GL-class SUVs.

With the X7 gone, BMW is set to focus on the production of a range of compact crossovers and diesel models in North America. The first compact crossover models to make their debut will be the Mini Crossover and BMW X1, to be released in 2010 and 2011, respectively. The X1 will be marketed as a high-volume model according to Reithofer.

New diesel engines will also be put into BMW's current X5 SUV and 3-Series passenger car lineups. Reithofer also hinted at the possibility of an X4 SUV based on the next-generation X3 crossover SUV.

BMW just debuted the X1 at the 2008 Paris Motor Show, click here to see more about the BMW X1 concept!

Source: Motor Authority