It was the last stint for the oldest model in Citroen's lineup. The company's management didn't consider enhancing the aesthetic part of the car and bringing it to those time standards. It was left to die on the market.
After Peugeot took over Citroen's shares, the new owner started to change the company's image and also made it more affordable. Perhaps it was the best way to save the famous brand that once sold more cars in a day than anyone else (the DS). Moreover, Peugeot had to decide whether to keep the brand as a premium carmaker or drag it into the same pool as Renault and Opel. It chose the latter.
When Bertone Studios penned the car, it made it almost timeless. Still, by the late '90s, the biodesign era imposed waved lines and curved panels. In contrast, the XM was nowhere near with its flat surfaces and angular styling. Curiously, though, it didn't look exactly outplaced. Unfortunately, PSA's management considered it wasn't worth investing in new body panels or bumpers. Hence, it left it like it was after the 1994 facelift.
Inside, the designers faced the same dilemma: to refresh it or not. The short answer was no. They didn't rework the cabin, but there were a few more standard features, such as the air-conditioning. It was an excellent addition but not enough to conquer the customers' hearts and wallets.
Under the hood, the most significant upgrade was the addition of the three-liter, 24-valves V6 powerplant. It developed 194 hp (197 PS) and was mated, as an option, to a newly introduced adaptive automatic gearbox. It was quite an improvement but, again, not enough. Last but not least, the turbodiesel versions were limited to just two options, and both sent their power via a five-speed manual.