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AC Schnitzer's hotrod BMW 318ti remembered by MotorWeek

There are plenty of compact luxury cars available in the US today, including the Audi A3, BMW 2 Series, and Mercedes-Benz CLA-Class. In the '90s, the BMW 318ti tried to offer a similar mix of luxury at a reasonable price, but it never quite found much success in America. The 318ti looked like an E36-generation 3 Series in front but featured a stumpy liftback at the rear. The only engine available in the US was a four-cylinder. If you had the money, though, the aftermarket was ready to give you more power and more aggressive looks. AC Schnitzer dropped a bored and stroked 3.0-liter inline-six under the hood to create a pocket-sized hot rod, and MotorWeek took it for a drive. The model in this video was the promo car for AC Schnitzer's US importer, and it had every upgrade possible to show off what the German tuner's produced. Under the hood, the company installed an upgraded engine with 241 horsepower and 228 pound-feet of torque. For comparison, a US-spec M3 of the era had 240 horsepower and either 225 or 236 lb-ft, depending on the model year. AC Schnitzer also sharpened the 318ti with a suspension overhaul and short shifter. According to MotorWeek's tests, the mods got the hatchback to 60 miles per hour in 6 seconds and gave 318ti laudable handling. So much performance wasn't cheap, though. The upgrades on the promo car cost more than twice as much as the 318ti's base price. Watch this Retro Review to find out the massive amount you needed to pay to get M3 performance in a tiny package. Related Video:

Mercedes fights off late BMW surge to claim 2013 luxury sales crown

The king is dead - long live the king. Mercedes-Benz is now your new US sales champion in the fiercely competitive luxury market, deposing the champ BMW, which has enjoyed annual supremacy for the past two years.
Thanks in no small part to the dynamite launch of the new, affordable CLA-Class, not to mention a redesigned E-Class and hot-selling S-Class, Mercedes moved 33,007 units in December alone, while sales in 2013 were up 14 percent, to 312,534. BMW, meanwhile, managed to sell 309,280 units in 2013. It was far from a sure thing for the Stuttgart-based brand, though, as BMW managed to nearly halve its rival's sales lead heading into the last month of 2013.
"We saw record sales, flexed our muscles across the entire product line from top to bottom and brought the customer experience to an all-time high," said Steve Cannon, Mercedes USA's CEO. While we don't have individual figures, it seems at first blush that the CLA was really the car that pushed Mercedes over the top.

BMW may keep next 1 Series out of the US

As BMW prepares to introduce the all-new 2 Series coupe and convertible, the 1 Series name definitely won't be going away. We know new sedan and hatchback models are in the works; including the GT shown above. According to Car and Driver, though, the future of the 1 Series nameplate in the US could be dependent on rival premium small cars like the Mercedes-Benz CLA-Class and Audi A3.
In an interview with C/D, BMW's North American head of product planning and strategy, Paul Ferraiolo, said that pricing might be the biggest deterrent to offering the third-gen 1 Series in the US. As he points out, BMW currently prices the 1 not too far from the 3 Series, but Mercedes-Benz and Audi will have their new small cars priced well below the $30,000 mark. BMW's Mini brand will also factor into the consideration since the 1 GT will share its underpinnings with the next-gen Cooper lineup.