After two unsuccessful generations of the 3 Series Compact, BMW decided to create a completely new lineup named 1 Series.
While the compact segment was very active in Europe, most premium automakers didn't really care about it. Audi was the only contender in the segment with the A3. At the same time, Mercedes tried to convince customers with the compact-sized minivan A-Class and the C-Class Sport Coupe and failed. So, BMW changed the pace and introduced the 1 Series lineup in 2004. It was the only compact-segment, rear-wheel driven hatchback on the market that offered five doors.
Interestingly, the 1 Series didn't look like a shrunk 3 Series with a tailgate. Instead, it featured a distinct front fascia with sharp-looking headlights with swept-back corners on their outer sides. On the sides, the sculptured door panels featured an arched lower line that connected the front and rear fenders. In the four-door version (five with the tailgate), the 1 Series featured split rear windows with a vertical slat, so it could've opened completely. Finally, at the back, the automaker created a slightly tilted forward tailgate flanked by taillights.
Inside, the materials' quality was similar to the one found in a regular 3 Series. For vehicles fitted with a sat-nav system, the screen was above the center stack. The buttons' layout and the instrument cluster resembled the same parts used on other BMWs. As usual, the German automaker installed bolstered front seats for the front occupants for better comfort and a split-folding bench in the back where two people could sit. Yet, the legroom was tiny, and moreover, the transmission tunnel was tall.
Under the hood, BMW installed a broad engine range with four or six cylinders. There were also a few highly fuel-efficient diesel versions.