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2004 BMW X3 Preview

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Khatir Soltani

Carving Out Another New Niche

Luxury SUVs are large, V8-powered behemoths, right? While currently true for the most part, BMW is about to change stereotypical perceptions with a compact 3-Series based sport utility. Emulating the strong selling midsize X5 in general layout, overall styling and features, the X3 could easily become the brand's top selling model in North America.

Emulating the popular midsize X5 SUV, the 3-Series based X3 fits into the compact SUV class. (Photo: BMW)

While touted by BMW as the "first premium Sports Activity Vehicle (SAV) in its class," the X3 will already face some competition from Land Rover's compact Freelander, albeit being sold as an SUV. But initially the competition won't be fierce. Land Rover, previously under the BMW umbrella but now controlled by Ford, hasn't met up to quality objectives for overall problems in J.D. Powers' Initial Quality Study (IQS), while its Freelander model in particular has come under harsh criticism for poor fit and finish and lackluster perceived quality, the tactile 'touchy feely' aspects of a vehicle's interior that often tempt buyers to step up to a luxury brand.

Without much competition in this niche category for the time being, the BMW X3 should easily walk away with top spot. (Photo: BMW)

BMW will not make either mistake. Currently sitting in 8th out of 36 positions, compared to Land Rover's 35th place in the revered IQS customer survey, the German brand is renowned for producing cars among the best in the premium class for perceived quality. The X3 should walk away with the majority of premium buyers looking for a vehicle in this class.

Without a doubt Land Rover will up its quality with a completely redesigned Freelander in the near future, expected to share much of its architecture with a new compact Volvo SUV to be named XC50. Both vehicles will reportedly derive their platforms from the next generation Ford Focus, hardly a premium nameplate. Other premium brands will follow suite with compact SUVs of their own for sure, but all this is just speculation, BMW is here and now with photos of the real deal, metal, leather and soft touch plastics included.

Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 6 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada