Wheelbase and overall length on the second-generation X5 due this fall will be longer than on the current model, which should help improve ride quality and stability as well as provide further differentiation from the X3. The '07 X5 will be a bit taller and wider as well.
The additional length will accommodate an optional third row of seats for the first time. That should help make the new X5 a stronger competitor for the Alabama-built triplets (ML, R and GL) from Mercedes-Benz.
The engine lineup for North America is expected to include updated versions of the current 3.0-liter inline six and the 4.8-liter V8, with a new 4.0-liter unit sandwiched in between. BMW also is contemplating whether to offer a new common-rail 4.0-liter V8 turbodiesel in the States at some point. For American buyers, a six-speed Steptronic will be the only transmission choice.
It is difficult to tell much about the final design from the disguised prototypes, but the styling theme on the new X5 is said to be evolutionary, with BMW family cues evident throughout.
BMW insiders say the chassis is essentially carried over from the current model, with some modifications, including the adaptation of self-leveling air springs on the uplevel 4.8 variant.
The 2007 X5 should be in U.S. dealerships by the fourth quarter.
What this means to you: The redesigned X5 will be reaching a showroom near you in the not-too-distant future.

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