BMW X3

2012 BMW X3 AWD 4-door 28i Angular Front Exterior View

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Shopping for a 2012 BMW X3? MSRP: $37,100 - $42,700

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The BMW X3 is a mid-size crossover vehicle that slots between the bigger X5 and the smaller X1 (which hasn't gone on sale yet in the U.S.). Introduced as a 2004 model, the X3 has been built in Austria by contract manufacturer Magna Steyr, but beginning with the second-generation vehicle and the 2011 model year, the X3 has been built in the U.S.--at BMW's Spartanburg, S.C., facility. The X3 competes with the likes of the Audi Q5, Mercedes-Benz GLK and the Land Rover LR2, and is priced in the high $30,00 range.

In its first generation, the BMW X3 became one of the anchors of the luxury crossover vehicle segment. It arrived in U.S. showrooms with six-cylinder engines, manual and automatic transmissions, and an advanced all-wheel-drive system that used input from stability control to determine how to apportion the engine's power. The first X3 also, unfortunately, suffered from a cut-rate interior and a very stiff ride. In each model year from 2004 to 2004, BMW modified the X3's looks or hardware to improve it. In 2007, BMW updated the engines, ride and steering, and cabins of the X3 with a noticeable improvement all around. Toward the end of its first generation, BMW dropped all engine variants save for the 260-horsepower, 3.0-liter in-line six-cylinder engine. A brisk performer, the X3 remained responsive and eager.

With the 2011 model year, BMW introduced the second-generation X3. Growing in all directions, this X3 -- largely carried over for the 2012 model year--also adopted the familiar BMW in-line six, in normally aspirated and turbocharged versions, with 240 horsepower and 300 hp, respectively. An eight-speed automatic transmission and BMW's sophisticated xDrive all-wheel-drive system are standard on either model. This X3's handling improved greatly while versions with adaptive suspension and driver-selectable steering gave drivers better comfort and precision than in the older version.

The current X3's styling has also adopted some of the latest BMW curves, though in this iteration, it's a much happier mix than in some of the early examples of this design theme--the 7-Series and 6-Series of the early 2000s, to be specific. Inside, the X3's upgraded interior brought new clarity and richer materials front and center.

With carlike ride and handling, and 0-60 mph times of 5.5 seconds on turbo models, today's X3 sits atop the luxury-crossover class in almost every regard. It's also a safety winner: the IIHS has named it a Top Safety Pick. And entertainment's finally on the menu: the options list includes an excellent navigation system, iPod integration, HD Radio, Bluetooth, and a big panoramic sunroof.

The 2013 model year will see the base in-line six dropped in favor of a turbocharged four-cylinder engine that promises nearly identical power ratings and potentially, highway fuel economy of up to 30 mpg. However, BMW hasn't divulged any plans to offer a small diesel in the X3, as it does in the larger X5.