By Tim Plouff

In a segment that has been traditionally populated by luxury station wagons, premium automakers have rolled out upscale, car-based sport utility vehicles as fast as they can. After Mercedes and Lexus enjoyed widespread success with their initial AWD luxury SUVs, both capable on-road people movers but seldom used off-road, the class has exploded along with all other SUV classes.

Mercedes now has two fancy SUVs. Lexus has four and even Porsche has one. BMW has two SUVs including its popular made-in-the-USA X5. These “trucks” and crossover wagons join luxury SUVs from Cadillac, Infiniti, Lincoln and upcoming new models from Audi and Jaguar.

BMW’s X3 joins its slightly larger X5 brother in a growing lineup of premium vehicles, yet the small BMW is one of the few compact class luxury SUVs. The X3’s overall dimensions more closely approximate the Hyundai Santa Fe, Nissan Xterra or the previous generation Mercedes M-class. Four inches shorter than the X5, the X3 is an entry-level crossover wagon starting at around $30,000. A lengthy list of optional equipment can quickly raise the price into X5 territory or the high $30K range.

Surprisingly, the X3 offers nearly as much passenger room and exactly the same cargo room as the larger X5. The main differences between the two: the X3 feels more agile and slightly more nimble than the X5 while the X5 gets the nod in the enthusiasm department with two optional V-8 engines that produce robust acceleration, which the X3’s straight six motors just can’t match.

I previously had sampled a sport-suspended X3 during our annual Winter Rallye earlier this year. With few miles on the clock and horrible pockmarked city roads to circumnavigate, that particular X3 was an underwhelming ride for my 15 minutes of exposure.

This X3 felt much different. Its ride and handling dynamics performed more like a traditional BMW: responsive and taut yet compliant over irregular surfaces. The suspension is firm but never punishing while steering feel is precise and communicates directly with the driver. You have excellent path control and the kind of sensual feedback that BMW fans find so rewarding. Add a small low-speed turning radius and a good cornering attitude, and the X3 is surely one of the best handling sport wagons currently available.

The BMW’s all-wheel-drive system has a rear-drive handling bias engineered into the traction allocation. Firmly apply the throttle and the driver “feels” the rear wheels pushing. All four corners are applying forward grip to the road yet the X3 exhibits the traditional BMW sensations of a sporty sedan. Traction control and an electronic stability program re-apportion power when necessary and help keep the shiny side up.

There is eight inches of off-road ground clearance under the fully independent suspension, but the absence of low-range gears mean the X3 is a soft-roader, not a backwoods bruiser. A hill descent program severely limits forward speeds on steep off-road excursions, but this is a crossover wagon designed more for the suburban lifestyle than the country farm.

The same 2.5-liter in-line six-cylinder engine used in the BMW 325 sedan supplies standard power. Variable valve timing helps to boost overall output to 184 horses, however, the torque curve only pumps out 175 pound/feet of peak energy around 3,500 rpm’s. Acceleration is more than adequate with the smooth-shifting five-speed automatic transmission and is generally enthusiastic. Yet I was left with the impression that more power here would be a good thing. I could easily envision an X3 loaded with passengers and gear better served by the optional 3.0-liter 225 hp six; 20-percent more horsepower would improve the car’s responsiveness without undue penalty.

The EPA mileage numbers bear witness to that assumption as highway mileage estimates are the same for both six-cylinder engines: 23 mpg for automatic equipped X3s and 25 mpg with the six-speed manual gearbox. My mileage averaged out to 22 mpg for the week.

Obviously, the 3.0-liter engine will cost you more up front. But the $5,000 price gap is somewhat negated by the additional features that come with the 3.0-liter X3, items that are otherwise extra cost amenities on the X3 2.5.

Standard fare in either model is a supportive driver’s seat that features tall side bolsters and a thigh cushion that extends forward to provide added leg support for those with long inseams. There is plenty of headroom front and rear, even with the impressive Panorama dual-panel sunroof. Slip the large overhead glass panels open and fresh air quietly flows throughout the cabin. Flip the button again, and a sunshade glides out of the ceiling to hide some, or all, of the sun’s rays on warm days.

Rear occupants have good legroom but foot space is at a premium if the front seats are all the way back in their tracks. The rear seat splits to fold but does not form a continuous, flat load floor. A one-piece liftgate rises easily out of the way providing convenient access to a cargo bay anchored by track-mounted d-rings that can handily secure large, moveable cargoes.

While the X3 has a low overall height, ingress and egress from the front of the vehicle can become somewhat of a challenge across a wide threshold made larger by those comfortable, high-bolstered seats. Fail to adequately stretch your leg beyond the perimeter, and your calf will be polishing the doorframe every time you exit.

With the temperature varying from the low ’90s to the low ’40s, the X3 got to demonstrate its heated seats and its powerful air conditioning. I would have preferred better blending power on the manual climate system so you can share fresh air. The tilt and telescoping steering column could drop a little bit lower, and the absence of satellite radio seems like quite an omission at this price point.

A base X3 2.5 starts at $31,000. Some expected features are extra cost options, selections that could quickly raise the retail price. Your money gets you a premium small SUV/crossover wagon that wears a BMW roundel. The X3 also has 50 percent more cargo room than a 3-series wagon, an elevated driving position for better visibility, all without sacrificing the look and feel of a BMW sports sedan.

To many drivers, that is very important. So far this year, enough drivers have concurred that X3 sales are up 30 percent; sales that have helped BMW maintain market share as its car lines are transformed with new model introductions.

If you still think that BMW is not a truck/SUV maker, then you’ll find it hard to believe that the South Carolina plant has built 500,000 X5s since 1999. The X3 is well on its way to exceeding those sales levels.