At its 2003 introduction, the X3 offered something no one else could--a luxury-compact with the versatility and all-road capability of a sport-utility, combined with the quality, performance and handling of a BMW. Compared to the large domestic and Japanese sport-utility vehicles then dominating the market, the X3 offered a smaller, more nimble, yet in many ways equally versatile alternative. The X3 also introduced drivers to xDrive, BMW's "intelligent" all-wheel-drive system that offers near-instantaneous torque apportioning with changing road conditions. Nothing else in its class came close, and the X3 quickly reached virtually the same sales figures as its larger, X5 sibling.

As with any BMW, improvements have made the X3 a moving target since its 2003 introduction. Originally offered in two guises--2.5i and 3.0i--the 6-cylinder X3 has gained in value and equipment since that intro. The popularity of the more-powerful 3.0i encouraged BMW to make it the sole X3 offering for 2006, while upgrades in equipment, such as a standard Panoramic moonroof and the no-cost choice of manual or automatic transmissions, have kept BMW's smaller SAV ahead of any competitors.

As with the 2006 X3, the 2007 lineup consists of a single model, now designated the X3 3.0si. The new designation indicates that the X3 now boasts an engine upgrade, in the form of the 3.0-liter 260 hp aluminum/magnesium Valvetronic inline-6. Complementing that engine is a new 6-speed STEPTRONIC automatic transmission, replacing the previous 5-speed as a no-cost option. A 6-speed manual remains standard, as the 2007 X3 retains its position as one of the only vehicles in its class to offer a manual transmission for serious driving enthusiasts.

With the new powertrain, the X3 3.0si is significantly quicker than the '06 3.0i: 0-60 mph in 6.9 seconds with its 6-speed manual, or 7.1 seconds with its new 6-speed STEPTRONIC. That's an improvement of 0.8 second with the automatic or 0.7 second with manual. Complementing the improved performance is a similar gain in fuel economy, as the new 3.0si carries an EPA estimate of 19 mpg City / 26 mpg Highway with the automatic, or 18 City / 26 Highway with manual. No other luxury-compact sport-utility can match those mileage and acceleration figures.
Accompanying the new powertrain are numerous interior and exterior revisions, including reworked front and rear styling, new standard and optional wheels, and richer interior materials. In addition to more power, a more refined interior, and an augmented standard equipment list, BMW's new Ultimate Service program increases the X3's inherent value as the premier compact Sports Activity Vehicle. In addition, new options and package contents enable customers to tailor the X3 to their own preferences.