After Porsche’s recent round of price hikes, it looks like BMW will soon follow suit. According to a report from CarsDirect citing a dealer bulletin sent this week, BMW will be doing the same in the new year.

While it didn’t explicitly point to tariffs as the cause, the timing does invite speculation for certain models, even if the biggest increase happens to hit a model built right in the United States, where tariffs aren’t the go-to excuse.

Also: Porsche Keeps Making Customers Pay For Trump’s Tariffs

BMW’s internal notice reportedly states that most vehicles in its range will see a price increase of roughly 1 percent, though not every model is affected. The adjustment will result in MSRP hikes ranging from $400 to $1,500 and will go into effect on January 1, 2026.

The most significant increases apply to the M5 Sedan and Touring, both up $1,400, and the BMW X6 M Competition, which will now cost an extra $1,500. Interestingly, the i4, i5, iX, i7, 7-Series, Z4, and XM are excluded from the price hikes.

This isn’t the first time that BMW has increased prices over the past six months. Back in July, it announced that the MSRPs of most 2026 models would rise by as much as 1.9 percent, resulting in price hikes of $2,500 for vehicles like the BMW X5 M and X6 M.

Those two models are built in the States, alongside other SUVs at the automaker’s South Carolina facilities. So technically, they shouldn’t have been impacted by tariffs, or at least not significantly, unless imported components factored in. As usual, the truth sits in a grey area.

For buyers looking to sidestep the latest round of price changes, it may be worth checking local inventory for cars already on dealer lots. Vehicles delivered before the end of the year are likely to carry current pricing.

Tariffs may have influenced BMW’s pricing for 2026, but the broader pattern raises more pressing questions. This is the second increase in just six months, suggesting something beyond routine adjustments.

Annual price bumps aren’t unusual in the auto industry, particularly with new model years. But those are usually linked to updates or added content, not blanket, across-the-board hikes with no clear explanation, and certainly not with this frequency.

As BMW prepares for a significant leadership change at the very top of the pyramid, a key shift is also happening within its high-performance division. Just days after the company confirmed that Milan Nedeljkovic will succeed Oliver Zipse as CEO next year, BMW M has named a new head of development.

Stepping into the role is Alexander Karajlovic, best known for overseeing one of M’s most polarizing recent projects, the BMW XM SUV.

Read: BMW’s Next Boss Already Has 40 New Models On His Plate

Karajlovic’s track record within BMW includes a range of roles that place him squarely in the performance and SUV space. Between November 2017 and 2020, he led development for BMW’s X derivatives and served as project manager for the XM, the M division’s first standalone model since the M1 in 1978, and arguably one of its most divisive to date.

He also served as vice president for the BMW M Product Line for two years, before heading back to the broader BMW group and worked in the areas of Requirements, Concepts, and Driving Experience Integration.

He now steps in for Dirk Hacker, a veteran who’s been with the BMW Group for 37 years and spent the last 11 of those at BMW M. Hacker has led development since 2015, a tenure that included not only technical oversight but hands-on involvement as a driving instructor with BMW’s Driving Experience program. The last model launched under his direction was the new M5 Touring.

“Dirk Hacker’s departure sees the long-term Head of Development at BMW M GmbH bow out to start his well-earned retirement,” BMW M chief executive Franciscus van Meel said. “His name is inextricably linked with an unprecedented product offensive, superior product quality and yearly sales records at BMW M.”

BMW M’s Future Plans

Karajlovic takes over at a time of transition, as the M brand begins laying groundwork for its next-generation lineup. Among the most closely watched projects is the upcoming M3, which is being developed in both all-electric and twin-turbo six-cylinder versions.

The fully electric model, a major technical shift for the badge, is expected to feature four electric motors and deliver upwards of 700 hp, a configuration that will likely spark no shortage of conversation among fans and skeptics alike.