• Bloomberg, Thursday, February 1, 2007 12 PM

Sometime this year, Bayerische Motoren Werke AG should begin showing pictures and prototypes of the 1-Series it intends to introduce to the U.S. market in 2008. The 1-Series--a smaller version of the 3-Series that shares many of the same parts--came out in Europe in 2004 as a five-door hatchback.

U.S. versions probably will include a coupe, a convertible and perhaps a sedan, but no hatchback. Unlike the European 1-Series, which comes standard with a four-cylinder engine, the American version will be powered by a 3.0-liter, six-cylinder motor.

BMW's smash introduction of the new Mini in 2001 complicates the positioning for its new small car. "It will be difficult for BMW to price the 1-Series in the U.S. between Mini and 3-Series," says Reilly Brennan, editor of Winding Road magazine.

Reviews from enthusiast magazines will be critical to the reception of the 1-Series. If a status-conscious shopper--the hedge-fund manager's young assistant, let's say--decides it's not just a cheapo version of the boss's 7-Series, then BMW might have another hit.

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