The 2011 BMW X3 makes up for the major flaws of the original compact SAV.

BMW fans will undoubtedly remember the harsh criticism levied against the original X3, which seemed to miss the mark on a number of critical counts, notably styling, size and ride.  With the second-generation 2011 BMW X3 set to hit the streets in January, all (or just about all) is forgiven.

In 2004, the X3 paved the way for the then-new segment of compact SAVs, or sports activity vehicles, as BMW prefers to call it. Even though far from perfect, some 150,000 units of the original X3 were sold, more than 600,000 worldwide.

But BMW listened well and during the first road test last week, it soon became clear that the X3 has been much improved. Not only are its looks now are on par with those of its bigger brother, the X5, but the interior has been worked over and is now in style with other BMW models, while the higher quality trim, with Leatherette standard, is definitely Bimmer-worthy.

Perhaps the most damning complaint about the original compact SAV was its uncomfortable ride, but that has also been addressed very well, making the X3 another model for which the ‘Freude am Fahren,’ or ‘Joy in Driving’ tagline applies.

The new X3 is larger, but mostly outside.

The 2011 BMW X3 has grown by 3.4 inches and its width and height are increased by 1.1 and 0.5 inches, respectively. With an overall length of 183 in. it now sits exactly in between the X1 and X5 models.

The interior is not that much roomier, but thanks to the new design it gives the impression that it is, and the passengers in the rear do benefit from extra leg room.

Also improved is the practicality of the fold-down 40/20/40 back seat, which permits the luggage compartment to grow from 19 to a maximum of 56.5 cubic feet.

The new X3 will be the first in the segment with head-up display as an option and with a large 8.8-inch screen for the navigation system.

In North America, two models will be available, the xDrive 35i and the 240 hp xDrive 28i. Other markets will also get those power plants, but in Europe, for instance, the 20d diesel engine will likely prove very popular.

The xDrive 35i was the only petrol engine available for the first test drives in the neighborhood around Atlanta, Georgia, where we got our first seat time in the 2011 BMW X3. It had the direct injected 3.0-liter turbo engine with 300 hp, 40 hp more than the outgoing models’ engine.

Both engines work together with BMW’s new eight-speed automatic transmission and as the nameplate indicates, they’re coupled to the standard electronically-controlled xDrive powertrain. This all-wheel-drive system can split the engine’s 280 lb-ft of torque 40/60 to the front and rear wheels, or if needed, a100 percent to the rear axle. Beefy Pirelli rubber (245/50 R18 helps to get the power to the road.

BMW says that the 2011 X3 x35i will accelerate in just 5.5 seconds from zero to 60 mph, which is easy to believe. On the road the engine acts quick and eager. Mid-range cruising means comfort and piece of mind since you know there is a lot of power in reserve. A swift pass of slower vehicles it absolutely no problem.

Steering input is effortless but not too light, thanks to the Servotronic system. Cornering does not make you feel e you’re sitting in a carousel and comfort in the Comfort mode is really good. In Normal it feels right, and in Sport+  it still is not uncomfortable.

In a nut shell, the 2011 BMW X3 has taken a huge step forward, not only with respect to quality and handling, but also getting ahead of the pack.  There’s no question a lot of competitors want a piece of the pie in the booming compact SAV segment.

With better standard equipment than before, the second-generation X3 also appears priced for success. The xDrive 28i comes in at $37,625, approximately $2100 less than the outgoing X3. The X3 xDrive 35i is priced at $ 41,925.

We always suspected BMW had a solid entry in the X3.  Now they’re out to prove it.

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