The BMW 3-series will be given a mid-life facelift in late summer as it moves to fend off challenges from the new Jaguar XE, an updated Mercedes-Benz C-class and the new Audi A4, expected to be revealed later this year.
Chief among the developments will be a new diesel model that emits less than 100g/km of CO2, the addition of three-cylinder engines to the range and a super-frugal hybrid.
BMW has long dominated the compact executive class, and even the decision to rename its coupé and convertible models ‘4-series’ last year did not end the 3-series’ sales domination.
However, speaking to Autocar, sales and marketing boss Ian Roberston said: “We will never underestimate any current or future competition, because in this industry there is always a moving agenda. But the 3-series is ahead of the competition today and we have built that success on generations of successful vehicles that have attracted customers time and again.
“You can be sure BMW will do everything to stay out front — and I know we have plenty of exciting stuff in the pipeline.”
BMW sells more than 500,000 3-series a year, but Jaguar has targeted modest annual sales of 80,000 cars with the XE, enough in itself to double Jaguar’s sales total.However, Jaguar has undercut rivals by targeting company car drivers with its lowest-emissions XE, which is powered by a 161bhp 2.0-litre four-cylinder diesel engine. This XE model averages 75mpg and emits 99g/km of CO2 when linked to a manual gearbox, rising to 104g/km with an eight-speed automatic ’box.
Those figures are best in class, eclipsing the most efficient equivalent BMW, the 320d Efficient Dynamics, which emits 109g/km. However, BMW insiders have hinted that the uprated 320d ED will produce less than 100g/km when linked to an automatic ’box.
BMW is also preparing a 2016 debut for a plug-in hybrid 3-series that will emit 50g/km and officially average about 150mpg, as well as launching a new range of turbocharged three-cylinder diesel and petrol engines. Details on the plug-in hybrid remain scarce, but reports suggest that it will offer performance in line with the 328i for a similar £30,000 price. That means a 0-62mph time of under 6.0sec.
The 1.5-litre three-cylinder units will supplant the existing 2.0-litre and 1.6-litre engines in the 316d and 316i. They match or exceed the power and torque figures of today’s equivalent engines and bring a reduction in kerb weight, improved crash protection and fuel savings that BMW puts at up to 10 per cent.
A more powerful variant of the three-cylinder petrol engine, with 228bhp at 5800rpm and 236lb ft at 3700rpm, has been confirmed by BMW, but it is unclear if it will get an airing in the 3-series.
As well as a lead on efficiency, Jaguar has targeted class leadership for the XE on exterior styling and handling agilty, with the latter particularly aimed at BMW’s reputation for building the ‘ultimate driving machine’. Even before the XE’s launch, BMW insiders were hinting that a firmer, sportier suspension set-up is being planned as an option for the revised 3-series.
Styling tweaks for the new-look 3-series range are said to be minor and focus on revised headlamp and bumper arrangements. Inside, the wider use of chrome and other high-quality materials is designed to improve cabin quality. New ambient lighting options are reported to be on the way to lift the perceived quality of the interior. The multimedia options are also said to have been extended as part of BMW’s commitment to offer more in-car features.
Outside of company car buyers, Jaguar also faces stiff competition from BMW, whose scale allows it to more readily discount list prices. At present, discounts of more than £6000 are available on the 3-series, with buyers even able to haggle up to £4000 off even the best-selling 320d SE. The launch of a facelifted car is expected to lessen those discounts, but Jaguar does not expect to be able to compete.
“At the end of the day, we are not looking to be a volume player,” said Jaguar Land Rover CEO Ralph Speth. “Our goal is to build one vehicle less than there is market demand for. We want our customers to want the XE and for that demand to be aligned with our production. We are confident that will be the case and it will pay off in terms of boosting residual values and reducing lease costs.”
Mercedes’ updates are expected to focus on engine efficiency and refinement upgrades. The new A4 has been delayed while Audi hones it to ensure that it can beat its opposition. In response, Jaguar is already said to be testing plug-in hybrid and all-electric versions of the XE for launch at a later date, as well as investigating incremental gains for its new range of Ingenium engines.
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