The BMW M5 has always been a supercar trapped in a sedan’s body. Occasionally, a station wagon’s body. The high-performance model has been a mainstay of the Bavarian brand since it debuted in Germany in 1985 and the U.S. in 1988.

The first generation was literally powered by a supercar’s engine. It borrowed its inline-six-cylinder from the BMW M1 Coupe, which was one of the classic poster cars of the era. I had one myself, hanging next to a red Lamborghini Countach. The 3.5-liter motor was rated at 256 horsepower, more than Chevrolet Corvette’s V8 had at the time.

With a top speed of approximately 150 mph, the M5 was the world’s fastest sedan and had the handling to match, but it retained the low-key style of the 5-Series luxury car on which it was based. Later generations would get more power from V8 and Formula 1-inspired V10 engines, but stay with the subdued appearance. BMW added a station wagon in 1992, but not for the U.S. market, as it was well into the transition to minivans and SUVs by then.

But a funny thing happened in recent years. While mainstream wagons were filling up the extinction list, high-end, powerful German sport wagons became popular among a niche of American car enthusiasts. Audi, Mercedes-Benz, Porsche and BMW all offer them today.

That includes the all-new 2025 BMW M5, which is available as a sedan or a wagon called the M5 Touring. Aside from the bodies, they are mechanically identical and electrified this time around.

They’re not fully electric vehicles, but plug-in hybrids that can travel up to 27 miles on battery power before the fun kicks in. The “fun” being their turbocharged 4.4-liter V8s that combine with the electric motor to produce 717 hp. That’s not quite triple the original M5’s output, but close. It is a version of the same powertrain used in the BMW XM SUV.

Current NASCAR cars aren’t as powerful. The M5 can accelerate to 60 mph in 3.4 seconds and reach a top speed of 190 mph, so it could give one of those a run for its money, even though it weighs more than 5,000 pounds.

The starting price is similarly large at $123,075 for the sedan and, in a rare case of less buying more, $122,575 for the Touring. More cargo space, that is.

The cabin features BMW’s latest ultramodern styling. It has a curved widescreen display on the dashboard for the instruments and infotainment system, a door-to-door light bar below it and a high-definition multicolor head-up display projected onto the windshield. Seating is suitable for tall passengers in both rows, but is low to the ground like a sports car’s should be.

The M5’s suspension has computer-controlled shocks to keep the body under control, and it wears tires that are nearly a foot wide. It holds the road in curves like they are slathered in super glue and has all-wheel drive, but only when you want it.

Disable the traction control, and you can switch to a setting that turns it into a rear-wheel drive vehicle for the express purpose of doing Hollywood-quality drifts. With all of the power on tap, you barely have to look at the gas pedal to send the rear of the car sideways as you turn the tires into smoke.

That’s not something you should ever try on public roads, of course, and it’s difficult to get a good sense of even a hint of the M5’s full capability on one without endangering other motorists and your driver’s license. If you want to stretch its legs, Germany’s Autobahn or a race track are more suitable venues.

Nevertheless, the M5’s dual identity remains intact in the new one. It’ll cruise comfortably along the highway all day with the best of them and can be equipped with all of the latest electronic driver aids. Among them is a lane-tracing cruise control that allows you to take your hands off the wheel when you are stuck in slow stop-and-go traffic. But if you spend a lot of time doing that, this really isn’t the car for you.