Environmental Protection Agency (EPA) fuel estimates are out for BMW‘s new line of 3-Series cars and it looks like they’ve caught the competition with their pants down.

The 2012 328i scores an impressive 24 mpg city and 36 mpg highway, that’s a 28 percent improvement in fuel consumption over last year’s model. What’s even better is that the 328i actually gets more power than the model it replaced for a total of 240 horsepower compared to last year’s 230. The 300-horsepower 335i doesn’t get a boost in oomph but as you may expect, is less thirsty in 2012. In fact, the automatic-equipped version is downright efficient, bragging 23 mpg city and 33 highway.

Though it might seem like it, these jumps don’t happen overnight, or by some magic gasoline fairy waving a wand. BMW achieved such impressive improvements in the 328i through cleverly engineered turbocharging and by lobbing a whole liter off of last year’s engine. That’s right, there’s a 2.0-liter inline four where there used to be a 3.0-liter six cylinder.

So what of the competition? The Mercedes-Benz C 250 has 39 fewer ponies than the 328i and only gets 21 and 31 mpg in the city and highway despite having a 1.8-liter engine. Audi‘s A4 uses a 2.0-liter turbocharged powerplant and also only gets 22 mpg city and 30 on the highway when equipped with their gas-saving continuously variable transmission, not to mention falling 29 horsepower short.

The jig is up for this model year, but it should be interesting to watch Audi and Mercedes-Benz respond to their Bavarian neighbor’s conservative consumption. Perhaps this is why BMW remains the top dog in the bratwurst pile.

BMW is cashing in on the chauffeur craze in China by offering a stretched version of the 3-Series exclusively to Chinese customers.

The longer wheelbase sedan will be sold as a 335Li, and will offer more legroom to Chinese consumers who want to be driven around but can’t afford a legitimate chauffeur car like  Bentley or Rolls-Royce.

It might sound ridiculous that the mild-mannered 3-Series would merit a hired driver, but Audi has actually been advancing Chinese sales by offering the A6L and A4L sedans with “L” signifying the longer version.

The 335Li fits between the two Audi cars in terms of rear-seat legroom according to China Car Times. Chinese customers will be able to buy the car later this year, though it won’t be offered anywhere else in the world. That would have meant a lot of extra work on BMW’s part until recently. The German automaker will manufacture their Chinese 3-Series cars in partnership with Brilliance, a company they have worked with on several projects in the past.

[Source: China Car Times]

Rumblings of a 3-Series GT might have been little more than a shudder from the rumor mill, but according to a story published on BMWBLOG a smaller version of the unpopular 5-Series GT is on the way.

It might seem strange that the company would launch such a niche car after the previous iteration failed so heavily. Maybe BMW is jealous of Mercedes-Benz. Whatever the reason is, expect to see them launching in March 2013.

They will feature the same rear glass to stubby bum you would expect on a 4-door hatchback from BMW, in fact they really look like a saloon version of the old 318ti with updated styling.

Engine offerings should be the same as the new 3-Series lineup, so expect to see a 2.0-liter twin-turbo four making 240 hp and a twin-turbo 3.0-liter six-cylinder making 300 hp in higher end models.

BMW did actually tweak the formula a little with this car, offering more rear legroom than the 5-Series version. Don’t expect to see these hit American shores, though. The company is releasing a touring edition of the 3-Series for American consumers which makes sense because it seems few people actually buy hatchbacks in the U.S.

[Source: BMWBLOG]

With all the excitement surrounding the official release of the BMW M Performance Diesel models, we almost forgot that the actual M models might be receiving some attention for the new year too.

For 2013, BMW gave the X6 M a light refresh, subtly changing the front of the crossover with new LED headlights and grille. Also included in the update are new leather interior choices. The 2013 BMW X6 M will continue to be powered by a 4.4L twin-turbo, V8 powerplant with 547-hp and 502 lb-ft of torque. The engine is mated to a six-speed M Sport automatic transmission.

Check out two videos of the 2013 BMW X6 M facelift below and read AutoGuide’s BMW X6 M Review here.

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BMW has announced the pricing for its new ActiveHybrid 5, and fuel efficiency will come at a cost, with a starting MSRP of $61,845, which includes a $895 destination and handling fee.

That price tag puts the ActiveHybrid 5 at $9,435 more expensive than the standard 535i, but with it you’ll get “not just highly sporty performance but also a double-digit percentage improvement in fuel economy over the BMW 535i.” The ActiveHybrid 5 couples BMW’s 3.0L turbocharged, inline-six engine that has 300-hp and 300 lb-ft of torque with an electric drive system packing 54-hp and 155 lb-ft of torque with an eight-speed automatic transmission. The combined output is 335-hp and 330 lb-ft of torque.

The ActiveHybrid 5 is able to be driven on electric power alone up to 37-mph and for a distance of 2.5-miles. What is impressive however is that the sedan can sprint to 60-mph in 5.7-seconds, which is just 0.1-seconds slower than the 535i. BMW hasn’t release EPA fuel economy estimates for the US model yet.

The ActiveHybrid 5 is the third in the line of hybrid models from the German automaker and features a new generation of BMW ActiveHybrid technology. It’s the debut for the combination of the six-cylinder engine with TwinPower Turbo technology and an electric motor. The ActiveHybrid 5 will go on sale in America starting in March 2012.

GALLERY: BMW ActiveHybrid 5

Kudos to BMW for owning up to its mistakes. Too often the news is full of scandals where car companies tried to cover catastrophes with foggy facts, but not the Bavarian luxury car king, no sir.

Instead, we stumbled across a recall that BMW deserves a pat on the back for, despite having to laugh a little. It’s only for six cars…

Apparently a handful of 2012 X5 xDrive35i SUV models have transmissions that can fail to engage in park, even with the shifter in the “P” mode. As a result, they can roll away. Obviously that could wreck the car, cause an accident, hit pedestrians and all sorts of other evil stuff, but we’re more fascinated with the fact that BMW is actually taking the initiative to recall them.

Expect a call from BMW soon if you own one of the six affected vehicles. You’re in for a free transmission.

It’s no surprise that BMW is extremely excited about the introduction of its four new M Performance Diesel models; so excited in fact that they’ve forgot to check the spelling of the word “precision.” We’ll overlook the irony of a spelling error on that particular word, and instead enjoy the epic sounds of BMW’s new, tri-turbo diesel models showing off just how sporty and powerful they are.

Unfortunately we won’t be seeing these M Performance Diesel models on U.S. roads anytime soon, but we can continue to hope that BMW might bring their 3.0L inline-six, tri-turbo setup sometime over to the States. With 376-hp and 545 lb-ft of torque with an eight-speed automatic, the M550d xDrive sedan and touring, the X5 M50d and the X6 M50d may be our wishes for years to come.

But for now, you’ll just have to settle with the video below. Even if it means wondering what the word “precison” is.

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A dizzying line of taillights that goes on for miles is enough to ruin anyone’s day. Pressure mounts in your temples and your skull feels like it’s going to crack. Welcome to the traffic jam migraine.

Don’t worry though, the commuter’s burden will eventually be a thing of the past. If there’s one thing luxury cars are good at doing, it’s showing us technology we can expect in econo-boxes years down the road. One of the latest features found at the forefront of cool luxury tech could stand to silence screams from angry drivers stuck in traffic: autonomous driving.

BMW is showcasing a video on YouTube that gives details on their highly-automated driving mode, which essentially drives the car for you.

Nico Kaempchen, the project manager behind the technology, explains that the car will fully take over driving under certain circumstances, but that the driver remains in control at all times. During that period, the car takes advantage of four different sensor systems to stay on track: radar, cameras, laser scanners and ultrasonics.

It’s not as simple as gluing a few sensors onto a 5-Series and hitting the road. Kaempchen tells us in the video that they need to map each road out that the car drove itself on down to the very inch (or centimeter as he says it).

BMW isn’t the only manufacturer to play with the idea of a car that drives itself. On January 24 we published a story about Volvo testing similar technology in what they call a road-train. Of course for Volvo to be involved it had to do with more than convenience. Their iteration involves a self-piloted convoy that can interact with independent traffic with the goal of making the road safer.

BMW ends their video by saying that the research they conducted will go towards improving already existent systems like their Traffic Jam Assistant. We’re not sure how far to look into the future for mass production, but rest assured when it’s here we’ll have a different outlook on traffic jams. You can watch the video below.

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BMW is proving again that a smaller engine doesn’t need to mean less oomph after announcing that the 2013 X-Series will be switching to a 4-cylinder engine.

The company will start producing their new X-Series crossovers this April. The biggest change for American consumers will be the single horsepower boost the 2013 BMW X3 xDrive28i will get despite the downsized engine. BMW decided to swap out the old naturally-aspirated inline six-cylinder that made 240 horsepower for a turbocharged 2.0-liter inline four that puts out 241 horsepower.

The more powerful 300 hp version, however, will get the same turbocharged 3.0-liter inline-6. Both versions are probably a good thing because the push toward a smaller engine means the lower-end X3 will get a bit of a boost in gas mileage, putting it in line with the 2.0-liter turbocharged Audi Q5, while still achieving more horsepower.

[Source: Inside Line]

After months of rumors and speculation, BMW has made its new 3.0L six-cylinder, inline diesel engine official, packing what they’re calling M Performance TwinPower Turbo technology, which is a misnomer since it sports three turbochargers. The system works by using two smaller turbos to deliver more responsive power down low in the rpm range, with a large turbo to add top-end thrust.

The new diesel powerplant will put out 381-hp and 546 lb-ft of torque, exactly the same specs that have been rumored for months now. It also features BMW EfficientDynamics technology, including Auto Start-Stop function and ECO PRO mode.

The M Performance diesel models announced are the M550d xDrive sedan, M550d xDrive Touring, X5 M50d and X6 M50d. And as we stated in the title, none of these models will be making their way to America. All models will come with an eight-speed automatic transmission.

Performance figures for the M Performance diesel models are impressive across the board, with the M550d xDrive Sedan reporting a 0-62 mph time of just 4.7-seconds while the Touring model comes in at 4.9-seconds. The X5 M50d will hit 62-mph in just 5.4-seconds while the X6 M50d is a tad quicker at 5.3-seconds. What is even more impressive is that the M550d will average around 44-mpg while the X5 M50d will do 37.7-mpg and the X6 M50d will do 36.7-mpg.

And of course, with all these vehicles now sporting an M Performance badge on them, owners will get M-specific tuning of suspension, bodyshell mounting, engine and transmission mounting, springs and dampers, all standard and optional chassis control systems, and the Servotronic mapping for the hydraulic steering.

No pricing was announced for these European-only M Performance diesel models, but AutoGuide will be sure to check them out in person when they make their official debt at the 2012 Geneva Motor Show.

GALLERY: BMW M550d

GALLERY: BMW X5 M50d and X6 M50d