First Look: 2027 BMW M2 xDrive Adds AWD Without Losing Its Drifting Edge

BMW finally brings its M-tuned xDrive all-wheel-drive system to the M2.

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There is no doubt BMW created a winner with the latest version of the M2. It’s a proper driver’s performance car, and it was one of the finalists for the 2026 MotorTrend Car of the Year award, just two years after winning the 2024 MotorTrend Performance Vehicle of the Year honor. But there was an omission from the M2 that just didn’t seem right: the availability of xDrive AWD. Well, three years into the G87’s lifecycle, the German manufacturer’s performance team decided to correct that situation.

Expected to arrive late this summer, the 2027 BMW M2 xDrive will provide the all-season, high-performance driving a certain type of customer has craved. To ensure the nimble car’s agility isn’t negatively impacted by powering the front wheels, the system uses an electronically controlled multiplate clutch in the transfer case that splits engine power between the axles. But the setup is rear-drive-biased, and all the power is sent to the rear wheels during normal driving. Once enough slip is detected, the M xDrive system begins feeding power to the front wheels, according to BMW.

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Also coming into play are the Active M Differential, M-tuned traction control, and Dynamic Stability Control software. Together, BMW says they adapt to ensure the M2 xDrive responds the way its driver expects, all while providing a noticeable increase in stability and traction.

You Can Still Drift, if You Want To

For enthusiasts who want rear-wheel-drive purity on racetracks or just in general, here’s the great news: you can dial that in using the M Setup menu. The driver can configure the M2 xDrive to work in rear-drive mode with stability control deactivated, sending all the power to the back and adding a bit of throttle-oversteer thrill to the experience. It’s also just one of the many characteristics and performance attributes the driver can adjust within the M xDrive system through the M Setup menu, giving the 2027 M2 xDrive some additional character personalization.

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No Manual Option

Probably the only disappointing news here is that BMW will only offer the new M2 xDrive with the company’s eight-speed M Steptronic transmission. That’s not a bad thing, exactly; it just means you won’t have the option of both shifting your own gears and having AWD.

The combination of the Steptronic transmission, AWD, and the 473-horsepower 3.0-liter twin-turbo I-6 engine will shoot the 2027 BMW M2 xDrive to 60 mph in just 3.6 seconds, about 0.3-second quicker than the RWD version thanks to its improved traction off the line, and it has a standard top speed of 155 mph. Add the optional M Driver’s Package and that limit rises to 177 mph.

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The new M2 xDrive will also come standard with 19x9.5-inch wheels up front and 20x10.5-inch wheels in the rear, and it can be optioned with track-specific tires. Six-piston front brake calipers and single-piston rear calipers with M Compound pads and rotors bring everything to a halt.

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Coming Late Summer

The 2027 BMW M2 xDrive is scheduled to go into production in August 2026 and will be imported to the U.S. from BMW San Luis Potosí in Mexico. Pricing will start at $74,950.

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2027 BMW M2 xDrive Specifications

BASE PRICE

$74,950

LAYOUT

Front-engine, AWD, 4-pass, 2-door sedan

ENGINE

3.0L/473-hp/443-lb-ft twin-turbo DOHC 24-valve I-6

TRANSMISSION

8-speed auto

CURB WEIGHT

3,988 lb

WHEELBASE

108.1 in

L x W x H

180.3 x 74.3 x 55.3 in

0-60 MPH

3.6 seconds (mfr est)

EPA CITY/HWY/COMB FUEL ECON

Not yet rated

ON SALE

Late summer 2026

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Having experience in many forms of the automotive industry, Justin Banner has done more than just write about cars. For more than 15 years, he's had experience working as an automotive service technician—including a stint as a Virginia State Inspector—service advisor, parts sales, and aftermarket parts technical advisor (a fancy way of saying he helped you on the phone when you had trouble fitting your brakes over your aftermarket wheels and the like). Prior to his tenure as a full-time editor, Justin worked as a freelance writer and photographer for various publications and as an automotive content creator on YouTube. He’s also covered multiple forms of motorsports ranging from Formula Drift, drag racing, and time attack, to NASCAR, short course off-roading, and open desert racing. He's best known for breaking down complex technical concepts so a layperson can more easily understand why technologies, repairs, and parts should matter to them. At MotorTrend, Justin is part of the news team covering breaking news and topics while also working as a judge for MotorTrend Of the Year events and other major comparison tests.

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