Base MSRP Range: $30,000 to $36,3500

Base Invoice Range: $27,500 to $33,500

MSRP As Tested: $42,660

Versions: X3 2.5i, X3 3.0i

Vehicle Category: Compact Sport Utility Vehicle

Engine Location: Front Engine

Drive Wheels: All-Wheel Drive

Engines: tested the standard 2.5-liter, Dual Overhead Cam, 24-valves, Inline 6 cylinder, with variable valve timing, 184-horsepower at 6,000 rpm and 175 lb-ft torque at 3,500 rpm

X3 has an optional 3.0-liter, Dual Overhead Cam, 24-valves, Inline 6 cylinder with variable valve timing, 225-horsepower at 5,900 rpm and 214 lb-ft torque at 3,500 rpm

Transmission: tested both the standard 6-speed Manual transmission and the optional 5-speed Automatic with Steptronic.

Engine and Transmission as tested: all variations

Fuel Economy (city/hwy):

• X3 2.5i 18/25/21 with manual transmission
• X3 2.5i 18/24/20 with automatic transmission
• X3 3.0i 17/25/20 with manual transmission
• X3 3.0i 16/23/19 with automatic transmission

Standard Safety Features: Driver and front passenger front and side airbags, side head-protection airbags, 4-wheel disc brakes, "> Antilock Braking System, Traction Control, Antiskid System, Hill Decent Control, In-Trunk Emergency Trunk Release, Daytime Running Lights, Brake Assist, Electronic Brake Force Distribution, Tire-pressure Monitor, Rear Obstacle Detection System, Remote Keyless Entry.

Competition: Acura MDX, Cadillac SRX, Ford Escape, Honda CRV, Infiniti FX, Jeep Wrangler, Land Rover Freelander, Lexus RX 330, Mitsubishi Endeavor, Suzuki XL7, Toyota Land Cruiser, Toyota RAV 4.

Review

Punkin Center, Arizona - Versatility is the name of the game in the sport utility marketplace. With dozens of vehicles to compete with, it is nearly impossible for an automaker to develop a product that can outshine the plethora of competitive products. As is the norm for BMW, their new entry is the shinning star of the small SUV marketplace based predominantly on its performance, and superior technology.

BMW had us test drive the brand new X3 in the deserts and mountains around Scottsdale, Arizona. The dirt roads of the spectacular Apache Trail National Park were the test track. The X3 handled them with ease and its surefooted stance gave us the confidence to enjoy our surroundings as we drove. And the road was one of those dicey mountain dirt tracks with steep cliffs that require the driver’s full attention.

Vehicle History

BMW’s first foray into the Sport Activity Vehicle market came in 2000 with the introduction of the X5. The mid-size luxury Sport Activity Vehicle (deemed so to highlight its emphasis on on-road, versus off-road performance) set a new standard for interior luxury and exterior style. Along with the finest on-road performance and handling of any upscale SUV, and glamorous good looks, the BMW X5 quickly turned the focused-on-off-road-capability-automotive-industry on its ear. BMW proved the versatility of an SUV could be merged with a performance vehicle any style-conscious professional would want own.

The X3 constitutes BMWs effort to make a more accessible version of the X5 product, thus attracting new, younger buyers to the product online. Base MSRP for the X3 is a good $10,000 less. While sales of the vehicle will be modest by comparison to mass marketed compact SUVs like Honda’s CRV or Toyota’s Rav4, a healthy 30,000 X3s should sell the first year.

BMW is attempting to carve a sub-niche in the market by giving the X3 great design and applying some of the body surfacing techniques used in all of their new product including the Z4, 5 and 7 Series sedans.

The shape of the X3 is traditionally SUVish, but the reflective surfaces give it a panache competitors don’t have. Take a few minutes to really look the vehicle over and you’ll start to become aware of how the subtle bends in the sheet metal reflect light. This technique has been applied to all the new BMW products.

The X5 and 5 Series products are related by luxury appointments, size and engine options. Both inline 6- and 8-cylinder engines are available in all 5 Series products. The X3 and 3 Series sedans, coupes and convertibles are available only with inline 6-cylinder engines and are more utilitarian in their appointments - but just a little.

The X3 has BMW’s legendary performance and handling. This along with its utility makes it an excellent choice for youthful couples, families and individuals to begin a lifelong love affair with BMW products.

Changes Over the Previous Model

This is an all-new product in the BMW line.

Exterior

X3 is ever so slightly smaller than its older sister the X5 - we’re talking a couple of inches here. The interior is also slightly smaller, yet the cargo capacity is larger.

The nose of the X3 carries BMW’s current “dual-kidney” grill and emblem. (BMW please find another name for it.) The headlight treatment, grille and design cues reflect the direction of the entire next-generation 3-Series lineup.

The bonnet (hood) is typically BMW loosing only the long, sloping windshield cue of the sedans and coupes. From the front the X3 is all BMW. However the 3/4 and side views make it clear the X3 is meant to do work. It clearly has the room to carry four adults comfortable, along with anything they might need for a weekend in the mountains.

The styling of the X3 is conservative when compared to the new 5 and 7 Series (and probably the super-suave 6 Series shortly to be released.) The styling of those two products received undeserved tongue lashing by the automotive press perhaps motivating BMW to mainstream the look of the X3. On the other hand, it is an SUV and can’t deviate too far from that core design and remain purposeful. The X3 had to maintain the core look and feel of all 3-Series products. And it does.

Interior

We agree the execution of the interior is the segment’s best. But we disagreed about whether the interior was up to BMW’s normal standards. Brian thought the X3’s interior was purposefully utilitarian and sparse. He also thought the center-stack looks too much like a Karaoke machine. So something bothered him.

Sandra thought the finish and textures were not up to BMW’s normal interior standards. Having lived with a 3 Series sedan for years, she expected more luxurious textures inside, especially given that the X3 is designed specifically for on-road performance. Those who want a luxurious SUV may be a bit disappointed. Those who want a great handling product, won’t be, as it is the best small SUV’s for on-road performance. The interior is surprisingly roomy for a small SUV. It is also quite comfortable on long trips. It has everything one would expect inside a BMW including analog and digital gauges in a cowl directly in front of the driver, cruise control, audio and climate controls on the steering wheel, and an SUV’s center console. The seats are wonderful; large, firm, bolstered-enough and attractive.

If you purchase the optional Navigation System (which we did not test) it sits at the top of the center stack, above the heating and air-conditioning vents, followed by the entertainment controls. There is a storage compartment and then a sorry-excuse of a cup holder - remember Germans eat in their kitchens, not in their cars.

Engine Performance

X3 is powered by the same two versions of BMW’s inline, six-cylinder engine offered in all the other 3 Series cars. The 2.5 liter version has 184-horsepower at 6,000 rpm with 175 lb-ft of torque at 3,500 rpm. The 3.0-liter engine has 225-horsepower at 5,900 rpm with 214 lb-ft of torque at 3,500 rpm.

Both engines are smooth and reliable. While the 2.5-liter is a good performer, the 3.0-liter engine makes the X3 much more like any other BMW. The 3.0-liter provides superior on-road performance with great acceleration; getting onto the freeway is a breeze, and a great safety feature.

The 3.0i also has more torque, important if you ever tow a small camper, trailer, or launch a wave runner. More torque also means more traction on bad terrain or under difficult road conditions. The 3.0i X3 is an elegant mix of BMW design and all-weather performance. Getting the 3.0-liter increases the monthly payment by about $110, a worthwhile expenditure for your own pleasure, protection, and long-term resale value. If you can afford it.

Ride and Handling

As with the X5, BMW did not compromise the X3’s on-road ride and handling. We drove it on familiar roads through the hills and canyons, and down a long stretch of the Ortega Highway outside of Phoenix, Arizona. On the twisting mountain roads the X3 preformed with BMW’s legendary handling. It was precise and smooth through both long sweeping high-speed, and tight low-speed turns. The ride is comfortable with minimal SUV roll. It’s fun, despite that the SUV format is not the optimal one for the ultimate on-road driving experience. The on-road ride is best-in-class.

The Ortega Highway is a long and very scenic road. Some of it is unpaved, well-groomed dirt track. This is what BMW choose to demonstrate the X3’s off-road performance or. X3 handled perfectly on the dry, hard-packed dirt road. But then so did Jona’s (he runs BMW’s press fleet), 760IL large luxury sedan, - almost a limousine -- a Toyota Avalon (with a couple of 60somthing Thelma and Louises inside, and a trash truck.

X3s off-road capabilities are not designed to be Paris to Dakar Rally capable. But for someone who lives with inclement weather, snow, or lots of rain X3 is probably perfect. It’s also perfect for the person who wants to get their mountain bike to more remote trailheads with more panache then the average driver. A couple can tow a jet ski to a lake with this vehicle. People into winter sports will love the way X3 deals with the snow, slush and debris you run into when you head for the slopes early to beat the crowds to the fresh snow after a storm.

xDrive all-wheel drive and traction system and the all-new chassis are responsible for the superb handling and traction capabilities. First, the rear wheels always have power. Xdrive is an electronically-controlled, multi-disc clutch that optimizes traction by allocating power (reducing or increasing it) to each wheel individually thus reducing wheel spin.

Safety

X3 comes standard with the safety expected in a luxury vehicle. BMW includes all-wheel electronic traction control, antilock braking system, front safety belts with automatic tensioners and force limiters, Head Protection System for front and rear occupants with a curtain-type system, interlocking door anchoring system, and BMW’s Dynamic Stability Control (DSC) system.

DSC has electronic brake-force proportioning, antilock braking, specific wheelbrake action to promote stability when braking and cornering take place at the same time, and Hill Descent Control to assist the driver in regulating the vehicle’s speed on steep downhill runs. On the X3 and X5, DSC adds a function that helps prevent control difficulties with a trailer in tow. Should the trailer begin to become unstable, DSC intervenes. Trailer-towing equipment is a BMW Center-installed accessory.

Some optional safety accessories include the Xenon Adaptive Light Control (ALC) system with auto-leveling headlamps that aims them in the direction you are driving. This makes night driving safer. The outboard lights steer with the front wheels. Front foglights, Park Distance Control, and Rear-seat side-impact airbags are all options.

In Conclusion

The BMW X3 has plenty of competition in this segment from great products such as the Infiniti FX, Acura MDX, and the Lexus 330. They are all good choices with nice levels of luxury and performance. It will be difficult to choose between them. However the competitors are not BMWs and their handling is something special. We think it gives them a little bit of an edge on their competition.

Editors' Ratings

Pros: Spacious. Best build quality and on-road performance in the small SUV segment. Great product to introduce one’s self to BMW. If you can afford it, this is among the best products in the segment to purchase.

Cons: Pricey. The interior is not as refined, nor is the exterior design as distinctive, as other BMWs. Poor gas mileage. Lots of very good competitors.

Ratings (1-10)

• Style: 8
• Performance: 8
• Price: 5
• Handling: 9
• Ride: 9
• Comfort: 8
• Quality: 9
• Overall: 8

More Data

Where Built: Graz, Austria

Major Options: 5-Speed Automatic Transmission with manual shift, Cold-Weather Package, heated seats and steering wheel, larger tires, leather interior, Navigation System, Obstacle Detection System, Premium Package, rear side airbags, power seat, satellite radio, special paint, Sport Package, sunroof, variety of interior options, Zenon Lights,

Seating: 5

Number of Rows: 2

Crash Test Ratings:

• NHTSA Frontal Impact/Driver Crash Test Rating: Not Yet Tested
• NHTSA Frontal Impact/Passenger Crash Test Rating: Not Yet Tested
• NHTSA Side Impact/Front Seat Crash Test Rating: Not Yet Tested
• NHTSA Side Impact/Rear Seat Crash Test Rating: Not Yet Tested
• NHTSA Rollover Resistance Rating: Not Yet Tested


• IIHS Frontal Offset Crash Test: Not Yet Tested

Length in Inches: 179.7

Warranties: 4 years/50,000 miles bumper-to-bumper, 6 years/unlimited miles corrosion, 4 years/unlimited 50,000 mile free Roadside Assistance, 4 years/50,000 miles free Scheduled Maintenance.

Weight in Pounds: X3 2.5i manual: 4,001, X3 2.5i automatic: 4,045, X3 3.0i manual: 4,023, X3 3.0i automatic: 4,067

Cargo Capacity in Pounds: X3 2.5i manual: 992, X3 2.5i automatic: 1,004, X3 3.0i manual: 1,026, X3 3.0i automatic: 1,037

Gross Maximum Vehicle Weight in Pounds: X3 2.5i manual: 4,993, X3 2.5i automatic: 5,049, X3 3.0i manual: 5,049, X3 3.0i automatic: 5,104

Towing Capacity in Pounds: 3,500

Gas Tank Capacity in Gallons: 17.7

Destination Charge: $695