To attract more customers on its side, BMW introduced the 3-Series compact in 1993.
The second and last generation was introduced in 2000. It didn’t work too well.

While the first generation of the 3-Series Compact was based on the E30 platform, the second generation was based on the E46 platform, which was a way better technical solution. The idea was to build a cheaper BMW, so the young customers will be attracted by the brand and then stick to it. The same thing did Mercedes-Benz with the C-Class Sport Coupe in 2001. And they failed as well.

For the second generation, BMW chose a different front fascia than the regular E46 3-Series. The rounded headlights in the middle and the wider one on the outer side, looked like they were separated, but they were in the same headlight unit. The 3-door bodywork featured the same front doors as the 3-Series Coupe. The rear quarter panels were different since the car was shorter. Instead of a windscreen in the back and a separate trunk-lid, the Compact version featured a tailgate.

Inside, the car was similar to the 3-Series E46 coupe, with the same interior room. Despite the long, 2.75 m (107.3”) wheelbase, since the engine was placed longitudinal, the front seats were pushed rearward. The dashboard was the same as the one found in the regular E46.

For the engine side, the 3-Series Compact was available with a choice of gasoline, and diesel engines ranged between 1.6-liter and 2.5-liter. A 2.0-liter diesel unit also was available. The biggest flaw of the car was the design and the light rear end, which tend the car to oversteer too often.