2001 BMW 3 Series Compact (E46/5) 325ti 5MT RWD (192 HP)

Vehicle Overview

After its first attempt to create an affordable, compact-sized premium hatchback, BMW tried again with a second generation of the 3 Series Compact and then stopped.

BMW unveiled the three-door hatchback model at the 2001 Geneva Motor Show, and the audience was shocked when the wraps were off from the car’s front. It didn’t have anything in common with the 3 Series. Moreover, it had nothing in common with any other BMW in history, bar the kidney grille. The automaker tried in vain to convince customers that it was a lightweight, fun-to-drive RWD hatchback. Unfortunately, the car had many shortcomings, and that affected sales. Even though it was powered by the same engines as the rest of the E46 lineup, the E46/5 (factory code) was a different kind of vehicle. It also relied on older parts, such as the rear axle, which was a trailing arm carried over from the 3 Series E30.

The front fascia was one of the most polarizing parts of the vehicle. In fact, most customers considered the car to be outright ugly. For sure, it didn’t win any beauty contests, but it wasn’t scrap metal, either. Its headlights, even though they were one-part units, appeared like two distinct parts, one for the high beams mounted towards the car’s center and the outer area for the low beams and parking lights. In addition, the turn signal lamps were independent pieces that looked integrated into the main headlight units. On the lower side of the bumper, BMW installed a broad air intake.

From its profile, the 2001 BMW 3 Series Compact E46/5 showed its short front overhang and a long hood compared to the rest of the vehicle. Since it shared most of its underpinnings with the E46 lineup, the automaker created front fenders that looked like they were carried over from the rest of the range, although these were unique to the Compact version. BMW didn’t cheap out with the vehicle and created specific doors for it instead of getting the frameless ones from the 3 Series Coupe (E46). To quickly vent the cabin, since only the front windows could open, the automaker used a pop-out system for the side rear glass areas. Finally, at the back, the large tailgate featured a wiper and designated taillights with clear covers.

Inside, customers had a wide choice of features and interior trims. The high-bolstered seats kept their occupants in place during high-speed cornering maneuvers. In the back, the second generation of the 3 Series compact provided more headroom, although that affected the overall look of the vehicle. Drivers fronted a four- or three-spoke steering wheel. The dashboard was borrowed from the E46 lineup with an integrated center console and tons of features.

Under its skin, the E46/5 3 Series Compact relied on a modified E46 platform. While upfront, it relied on McPherson struts, the rear axle was borrowed from the E30 lineup. The engine range was respectable and included fuel-efficient diesel powerplants. All versions were paired with five-speed manuals, while a five-speed automatic was available.