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Norbert Reithofer - BMW’s Chief executive officer - stated this week that the company has decided to cease production plans for the large sport-ute range that for now includes the X3, X5, and X6 crossovers. Reithofer cited economic problems in the United States and Europe as the main reason for the cancellation of the program, i.e. sales of SUVs are dropping like a rock.

Meanwhile, other reports suggest that the green light in Munich has been given instead to a smaller crossover to be based on the 1-Series platform, which would enable BMW to expand its X range with an X1 instead of an X7. Smaller, lighter and more fuel efficient is probably a smarter direction to head in these times than bigger, heavier and greater guzzler.

BMW will be producing the brand new X1 at the Leipzig facility and will be revealing it in its true form at the Paris Motor Show in September. We can only imagine that the concept version revealed to us will look very similar to that of the production version.

The X1 will go on sale in the fourth quarter on 2009 and will be built based off of the platform of the 1-series and “will use the two highest spec gasoline and the two highest spec diesel engines from the 1-series,” according to a source.

BMW will be showing off the new X5 Vision EfficientDynamics Concept at the 2008 Geneva Auto Show. This year they have proven that they are choosing for their theme to be ‘green’ and showing off this twin-turbo, 2.0 liter four cylinder diesel engine that can connect to a hybrid motor is a perfect beginning to that.

The diesel by itself can make up to 204 horsepower and 295 pound-ft. of torque. When you add the compact generator you can increase that power another 20 horsepower and 154 pound-ft. of torque. The power is spread throughout the car through the use of the eight speed gearbox.