• 4.4-liter twin-turbo hybrid produces 738 horsepower, 738 lb-ft of torque
• 0-60 mph matches X5 M Competition at 3.7 seconds
• Top speed of 175 mph, two mph slower than X5 M Competition
• Battery recharged in just 3.25 hours

This is the all-new BMW XM Label Red, and it's officially the most powerful M model ever produced. The M Hybrid drivetrain has a maximum system output of 738 hp and 738 lb-ft of torque, which is a 94-hp and 74 lb-ft increase over the standard XM. The XM dethroned the M5 CS as the most powerful M last year, and now the Label Red has solidified the XM's position as the halo Motorsport Bimmer.

The M5 CS is relevant because it uses a portion of the XM Label Red's powertrain. In the CS, the 4.4-liter twin-turbocharged V8 produces 627 hp and 553 lb-ft of torque. In the Label Red, the same engine's power is dialed back to 577 hp, while engine torque remains the same at 553 lb-ft (738 lb-ft total).

But as we know, the secret to that 700-plus figure is the plug-in hybrid system. The electric motor, incorporated into the eight-speed M Steptronic transmission, contributes up to 194 hp and 206 lb-ft.

As the ultimate M, the XM Label Red is slightly disappointing from a Top Trumps perspective. BMW claims a 0-60 mph time of 3.7 seconds and a top speed of 175 mph if owners opt for the optional M Driver's Package.

While it may be the most potent M ever produced, it's not the quickest or the fastest, which seems odd for a halo car. The previously mentioned M5 CS hits 60 mph in 2.9 seconds and tops out at 190 mph. Still, the M5 CS is extremely limited and quite pricey, but something isn't quite right when a (relatively) mid-tier M car like the M3 Competition is both faster and quicker than the only standalone M model and supposed leader of the pack.

We suspect a lot of that has to do with weight. The Label Red's figures are yet to be revealed, but the regular version crests 6,000 lbs.

Thanks to a pre-gearing stage, the torque provided by said electric motor provides 332 lb-ft at the transmission input. This gives the engine a dual character of sorts. The electric motor is on torque-filling duty, providing brisk acceleration from a standing start. The V8 engine and its high-revving nature provide impressive in-gear acceleration and a semi-decent top speed of 155 mph - or 175 mph if you attend BMW's driving school (that's essentially all the M Driver's Package offers these days.)

A 19.2-kilowatt-hour battery integrated into the underbody provides power to the electric motor. The XM Label Red can be driven in electric mode for about 30 miles. There is no fast-charging option, but the M Hybrid system allows AC charging up to 7.4 kW. BMW uses predictive thermal management to decrease the charging time to 3.25 hours.

If you own a house with a garage and a home charger - and at this price level, you almost certainly do - you could go for weeks without using a single drop of gas.

The Label Red doesn't just represent an increase in power. There are model-specific items, such as the adaptive M Suspension Professional. This system has electronically controlled dampers and active roll stabilization to keep the vehicle as flat as possible through corners.

M cars always have impressive brakes, and the XM Label Red is no different. At the front, it has six-piston fixed calipers, while the rear is equipped with a single-piston floating caliper. As a plug-in hybrid electric vehicle, it also has a regenerative braking system with two pedal feel settings.

Other driving-related items include the M xDrive all-wheel-drive system and an electronically controlled differential lock on the rear axle. This M Sport differential has on-demand variable torque distribution between the left and right wheels, further disguising the car's weight through the bends.

Naturally, Label Red owners want it to stand out. You'd think the XM's contentious and shouty exterior would be enough, but the Label Red can be distinguished from its lesser sibling thanks to 23-inch wheels, Black high-gloss finish for the kidney grille and diffuser, and a Toronto Red accent band instead of the standard black. You can opt for a set of 22-inch wheels at no extra cost.

The standard color is Brooklyn Grey metallic, but owners can choose from more than 50 BMW Individual paint finishes at no additional charge. Some of the available options include Urban Green, Petrol Mica metallic, Anglesey Green metallic, and Sepia metallic.

Only a small number of cars will be finished in BMW Individual Frozen Carbon Black, which is a matte finish. According to BMW, the contrast between the gloss accents and matte surfaces creates a dramatic visual impact.

The black-and-red combination carries through to the interior. The 3D headliner and pillars are finished in black, while red is used on the diamond-shaped upper sections of the backrests and headrests of the front and rear outboard seats. Additional splashes of red contrast stitching can be found throughout the cabin. The air vents have red accents, and there's a red XM badge on the control display. Finally, there's a trim strip in satin effect carbon fiber with red and blue accents and a Boost Mode on the left-hand shift paddle.

Standard interior comforts include Merino leather, heater backrests, a sculptural headliner with 100 LEDs, ambient lighting, four-zone climate control, and a Harman Kardon sound system. BMW's latest iDrive is standard but will likely be updated to the next updated version over the air as soon as it becomes available.

Standard safety packages include Driving Assistant and Driving Assistant Professional, which come with all the advanced driving assistance acronyms you could possibly want. BMW's Highway Assistant is also standard, allowing for hands-free driving up to 85 mph on limited-access highways.

The XM Label Red will debut at the Auto Shanghai international motor show, and production will begin in August 2023 at the BMW Group Plant Spartanburg in South Carolina. The MSRP will be published closer to the start of production but expect it to be somewhere in the region of $200,000.

If you're just looking for a fast BMW SUV, we'd recommend turning your attention to the latest version of the X5 M Competition, which has a higher top speed, identical 0-60 figures, and a much lower starting price of just over $122,000. If you needed any more proof that M has lost its way, there it is.