Alright, I'm entering this thread. I come from a BMW/VW/Volvo family. That is all my parents, as well as 2 grandparents have ever owned.
My father grew up driving in Michigan. He was given a 1967 BMW 1600 that he later upgraded to be more like the 2002 model. They far exceeded any car at the time in the snow, especially any american car, and I'm sure they still would. The wheelbase added a lot to its snow/ice ability, and the steering was strong. My father moved out to Tahoe in 1972 and lived there for a year, driving the car day in and day out. It drove fine in the snow then, and I'm sure if he took it out of the garage and decided to drive to the snow today, it would do fine now.
I have previously owned a 325ix in the past, and it handled fantastically in the snow. Never froze up.. rarely slipped, or if it did, it worked just as well as most any other car that you could buy today in the snow. There is a reason why it won the Chamonix ICE race at least 3 years in a row.. They only took it off the market when they introduced the E36 model car in 1992, where they did not make an X subseries.
BMW came back with the X in the 90s, with the E46 model, and I guerantee that car is just as good as any car of the day. It was just expensive at time when you could get AWD on a subaru for much cheaper. Regardless, it is VERY high quality.
As for RWD bmws, they do fine in the snow. My father now has a 1995 525i with a few power upgrades. The thing is just fine in the snow. Sure, you're going to want to chain up to get better grip, but it does fine.. After all BMW is based in Munich, Germany.. just down the hill from the Alps, where it gets extremely icy, and much like if you took east coast driving conditions, and put them on the west coast. Pretty bad. The cars were meant to be able to go anywhere, and still are probably the most popular thing you will see in the region... Someone from Germany back me up on this? or at least prove me wrong if I am.
As far as other cars go, Sure, audis are very good in the snow as well, but I wouldnt say they dominate a BMW just because they have the Quattro system AWD in comparison to the BMW X. They are dirived from the same AWD setup.. they really arent all that different. In fact, if you put the SUVs to the test, there are plenty of people who will say an X5 dominates the Audi Quattro SUVs in the snow... and vise versa. They really are very similar.
SpinninMackinnon.. I would also liek to see this top gear episode where the guys said BMWs suck in the snow.
Besides, if you are speaking the truth, are you going to trust guys who come from britain, where it rarely if ever snows that much, on what is better in the snow? I mean.. I trust jeremy, richard, and James to almost every extent.. but I'd like to hear the opinion from a slightly better source in this situation.
To get back to the main, and real point of all of this, BMWs are some of the best made cars on the planet. Though some see them as snobby, poshmobiles... that really only applies to the big huge 7 series, or overbearing 4.6L x5's and such. All the unessesary ones..
If you find a good E30 or E36 3 series bmw.. especially with the M20(1984-91) or M50(1992-96) 2.5L engine, you're going to be happy with the results. The fact is, the cars last forever, are becoming more inexpensive to maintain, and will need less maintnence than most cars as it is. Throw snowtires on them in the winter, and you will be delighted with the results... I have been in the past, and I'm sure that in the future, I will be pulling out in the driveway in another E30.. its just too good of a car to pass up.