The BMW 1M is the smallest - and lowest-priced - model to carry the M designation.

The good news?  BMW has introduced the fastest small car in its line-up — and the most affordable car ever to wear the vaunted M badge.  The bad news?  It won’t be around for long.

More than two years in the making, we got the chance to take the 2011 BMW 1-Series M for a spin on the challenging Willow Springs Raceway, north of Los Angeles, discovering that both on and off the track it more than lives up to admittedly tough expectations.

At just $47,010, including destination charges, the new 1M will likely have a lot of M aficionados checking their bank accounts hoping to find enough change hidden in the couch to plunk down a deposit.  But if you’re among them you’d better move fast, as the maker has an all-new 1-Series coming later this year.  The current 1M will be pulled from production, with no clear date set for its replacement.  (For more on the new 2012 BMW 1-Series, Click Here.)

Our day with the M started in suburban Los Angeles as we headed north through the back country canyons that can quickly test the mettle of even the most promising performance cars.  It didn’t take long to feel at one with the machine which, like all BMW M models, is clearly more than just muscle.

The new 1M is only a few tenths of a second slower than the bigger, heavier M3 from 0 to 60.

But, let’s face it, there’s plenty of power bubbling out of that twin-turbo, 3.0-liter inline-six, which directs power to the rear wheels through a 6-speed manual transmission.  The 1M is rated at 335 horsepower, though it will briefly pump out 369 in overboost mode.  Torque is rated at 332 lb-ft.  Significantly, that power comes on fast, 90% if it by the time the engine is turning 1,500 RPMs.

Work the gearbox right and you’ll be turning 60 in barely 4.7 seconds, with BMW claiming an electronically-limited top speed of 155 mph.  That’s barely two-tenths of a second slower than the bigger – by 9 inches – and heavier – by 300 pounds – M3.

The 1M sits lower than the standard-issue 1-Series, with a slightly wider track.  That helps it handle the suspension, sport differential and performance brakes that were lifted from the M3.  The two cars also share their 19” competition tires and wheels.  The 1M’s fenders, meanwhile, have been flared to handle the bigger rubber.

The 2011 BMW 1M shares its 19-inch wheels - and suspension, brakes and sport differential - with the M3.

Four signature exhaust pipes confirm for anyone you’ve blown by that this is an M.  The car also gets Xenon adaptive headlamps outfitted with BMW’s signature corona rings.  The taillights use LED bulbs.

The 2011 BMW 1M also adopts the air curtain system originally introduced on the wildly popular Vision Concept.  The system is used to compress and smooth out the airflow around the 1M’s wheels.  The impact is a small but measurable improvement in aerodynamics, as well as modest increase in brake cooling.

Inside, our test car featured an all-black cabin with orange contrast stitching, highlighted by the classic M gauge cluster.  Accents in Alcantara gave the car a more luxurious and sporty feel than the rather plain and pedestrian base 1-Series.  The 1M also lifts the M3’s sporty wheel and supportive seats, all the better as you charge through the corners.

The 1M is wider and lower than the base 1-Series and gets the M-edition quad exhaust.

For those wondering about the unusual nomenclature used for the 1M, a bit of background will help.  The M series traces its roots back to the original M1, of which only 400 were built between 1979 and 1981.  Like the jersey of a Hall of Famer, the M1 designation, the maker insists, has been retired.  So, it’s going to be the 1M, even while we get M3s, M5s and M6s.

Whatever the name, the new car more than lives up to what you’d expect.  That was especially apparent out at Willow Springs, which M Brand Manager accurately described as one of the most dangerous tracks in North America.  It features some challenging elevation changes and a series of long, sweeping turns that are, for much of their length, decidedly off camber.

The 1M's twin-turbo I6 makes 335 hp, but bumps that to 369 in overboost mode.

Over the years, testing a variety of products at the Antelope Valley track, we’ve seen more than a few journalists as well as trained pros run off into the surrounding desert, as the seemingly endless skid marks attest to.

Yet the 1M handled the challenging tarmac as if they were designed for one another, our car willingly shaving a second or more off each lap.

On the street, that means a bit of a harsh ride, but not enough that you wouldn’t be able to use this as a daily driver that can also handle the occasional track day.

Other than the harsh ride, there’s not much to complain about, though we imagine some might wish for an automatic gearbox or perhaps a DSG with paddle shifters.  We’ll cautiously bet that one of these will appear on the next-generation 1M, which likely won’t be around before sometime in 2013.

The only other complaint, if you can call it that, is with the Sport Mode setting.  On most M models that little button will adjust all manner of vehicle functions, including gearbox and suspension, as well as electronic stability control.  Here it only modifies the throttle mapping, though you can separately dial back the ESC so that it only kicks in should you really come close to losing control.

BMW will officially reveal the 2012 1-Series at the upcoming Frankfurt Motor Show. A new 1M likely won't appear until 2013.

Load the 2011 BMW 1M up with its optional navigation system and everything else on the check list and you’ll barely approach $55,000, still a fair bit short of a base M3.  True, it’s a wee bit slower and doesn’t have quite the interior space, but for those who’ve always wanted more from the BMW 1-Series, the 1M suggests there are plenty of ways to get there.

As we noted, the new model will be around only until the end of this year – if the limited production run doesn’t sell out before then.  (Click Here for more on the production plans.) So, if your budget has you counting loose change, you might want to move fast.  As the most affordable offering in the M catalogue, the 2011 BMW 1M is definitely worth checking out.

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