From Autoweek, the attached photo is of a proposed BMW V7 model aimed at the Mercedes R Class and is rumored to hit North America in 2009. BMW calls this their "Progressive Activity Sedan."
Remember, this photo is of a rough, partially disguised prototype -
According to Autoweek, the new vehicle will be "more wagon than van, it will be aimed at buyers seeking the luxury and road-going manners of a 7 Series but in a more practical and roomier body with seating for up to seven. The vehicle is based on 5 and 7 Series components, including a new turbocharged 4.0-liter V8 under development in Munich, a soon-to-be-introduced eight-speed automatic transmission and all-wheel-drive that will also be an option on the 7 Series."
Personally, depending on the size of the new V7,this looks like more of an E Class Wagon than R Class Competitor or maybe it will fit in between.
Agreed on the lack of BMW's "double kidneys" front grille makes this more of a Volvo. It looks/sits higher than the Sedan next to it, so it may provide the driver's view closer to an SUV than a Sedan or Wagon. It's gonna come down the 3rd row leg and head rooms to determine if it is a competitor to the R. If the 3rd row is mediocre (room and access) like those of the X5/Q7/XC90 then there is nothing new. The tail end roof line looks slopy, low, meaning less utility (for cargo space) and head room (for 3rd row passengers).