There's no question who builds this vehicle. X5 is immediately recognizable as a BMW. It looks like a 5-Series wagon on steroids, and is remarkably close to the wagon in overall size. From its kidney-shaped grille to its multi-segmented tail lights, the curvy X5 is all BMW. The slope of the tailgate looks almost identical to that of the 5 Series wagon. The major difference is that the X5 is 10 inches taller than the 5 Series wagon, this taller stance being key to its sport-utility character. Large-diameter wheels with low-profile tires enhance its aggressive appearance.
Surprisingly, the X5 is classed as a light-duty truck by the U.S. government. Most truck-based SUVs, including the Mercedes-Benz M-Class, are built with a separate body bolted onto a frame. X5, however, uses a monocoque body shell like that of a regular sedan. This unit-body construction provides a much stiffer structure, which improves handling, reduces noise and allows better fit and finish. The X5 is not the first monocoque SUV; Jeep pioneered the concept two decades ago with its Cherokee, a concept carried forward with the current Grand Cherokee. Lexus RX330, Nissan Pathfinder, and the 2003 Range Rover, which BMW helped develop, all use a unit-body design as well. Because of the unit-body construction they share, the Lexus RX is the X5's closest competitor in terms of ride comfort and handling.

BMW X5 has a great interior. Typically BMW, it's all business and no nonsense. But it's also very luxurious. The 3.0i comes standard with leatherette upholstery, but leather is an option. The 4.4i comes with the Dakota leather as standard equipment, and a choice of light or dark poplar wood trim. New for 2003 are Dakota hides, which are supposed to be better than last year's Montana skins. 4.6is comes with Nappa leather, or with a combination of Nappa and Alcantara. We prefer Alcantara for its suede feel, but it isn't as easy to clean as smooth leather. Buyers can choose among black piano wood, Imola Red or Titanium trim, all for no extra cost. An oil temperature gauge and a tachometer with a variable warning segment help monitor the high-performance V8. All gauges in the 4.6is are unique, with italic figures on gray dials.
The simple, uncluttered layout, accented with touches of wood, lends an air of elegance. The door handles have a nice brushed-aluminum finish, and the soft plastic surfaces feel more like leather. The switchgear is ergonomically well designed. The front seats are excellent, firm, supportive, with lots of adjustments. The rear seats are also comfortable. The rear seatback can be reclined. Despite the X5's greater exterior height, however, headroom is nearly identical to that of the 5-Series wagon.

X5's cargo capacity is no better than that of a 5 Series wagon's. The moment we opened the rear hatch, we were struck by the lack of cargo space. Power switches in the cargo area move the reclining seatbacks forward for some additional carrying capacity, but the seats move slowly, and the gain in space is small. The rear seats are split 40/60 and can be folded down to provide a fairly flat, though not perfectly flat, surface. The height of the load floor makes it difficult to load cargo. X5's cargo deck stands about 35 inches off the ground. That's five inches higher than in the Land Rover Discovery, a highly capable off-road vehicle with a high ground clearance and a live rear axle. Caesar the English mastiff, who has climbed up his dog ramp into dozens of different SUVs, found the pitch too steep to climb into the BMW. (Add the choppy ride quality and he gave X5 the big paws down.)
X5's rear hatch is split, with a flip-up window and a tailgate similar in design to the old Range Rover's. The rear window can be opened independently of the tailgate, convenient for quickly loading small items. A remote hatch release opens the rear window, but this only led to a frustrating sequence of events: We'd press the release, climb out, and close the driver's side door. Closing the door would increase air pressure inside the cabin just enough to lift the open rear window, which would then flop down and latch itself again. So we'd arrive at the back of the vehicle only to find that we had to walk back to the driver's seat and re-release the hatch. Do this a few times and you begin to feel like an idiot. This can also make the X5 a bit inconvenient when dropping passengers at the airport. Armed with groceries, you'll more likely open the rear hatch with the keyless remote control, which works well.

Reflectors on the top of the tailgate's door jamb enhance safety when accessing gear at night. A sturdy rollaway cargo cover can be removed for carrying larger items.

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Passive safety has been a major goal in the development of the X5, which can be ordered with no fewer than eight airbags. Each front-seat occupant gets a front airbag, a side thorax airbag and a side head bag. Optional side thorax bags are available for the two rear-seat occupants. BMW's Head Protection System for front and rear passengers is standard. The airbag system is essentially the same as in the advanced 7-Series. According to BMW, the X5 performed better than any vehicle ever tested by the Insurance Institute for Highway Safety (IIHS) in its brutal 40-mph offset crash test. Not surprisingly, the Institute rated the X5 a "Best Pick" for safety.
Another great safety feature is the audible Park Distance Control. Sensors on front and rear bumpers detect parked cars, tricycles, and other obstacles, and an alarm beeps faster as you maneuver closer to whatever might stand in your way. When the tone goes solid, the bumper is very close to the object. Different tones are used front and rear, making it much easier to parallel park in tight spaces.

BMW claims to have improved the optional navigation system for 2003.