The BMW 3 Series Compact is considered to be the grandfather of the BMW 1 Series. A significant (if not by design) model tweak allowed a smaller, but seemingly fitting model to be squeezed into the whole product range.

The 3 Series Compact is basically a truncated liftback version of the BMW 3 Series produced by the German automaker between 1993 and 2004 on first, the E36 chassis, then after 2001 on the E46 platform.

While it shared a wheelbase of the full-fledged 3 Series, it did come with some different specs – which made it totally awesome!

The 3 Series Compact was never meant to be a powerful car, neither on the E36 or E46 chassis after that. Most powerful engines were – surprisingly – the diesel variants and their amazing torque. While any self respecting 3 Series Compact diesel owner wasn’t keeping the car stock, examples with 130-150HP for the E36 and over 200 hp for the E46 models were frequently seen.

Something similar can be said about the first generation 1 Series with diesel engines providing better acceleration, more torque and more fun!

The E36/5 compact shares its suspension with the BMW Z3; the front suspension employs the E36’s standard MacPherson strut design, while the rear suspension uses a semi trailing arm from the previous model BMW 3 Series (E30). The E36/5 made use of the older semi-trailing arm rear axle, as opposed to the E36’s Z-Axle Multi-link suspension. As the trailing arm design was smaller, it allowed for a lower trunk floor height, fold-down rear seats, and an exterior undermounted compact spare tire.

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The inherent design of the trailing arm suspension was that it favored oversteer. While journalists everywhere were happy to discourage anyone from buying the car, the fun factor was there: it was prone to oversteer. It was also a rather driver-intensive vehicle, requiring enough work and skills to master it properly.

Design wise, the E36 Compact was a slightly more successful model than the E46 variant which stood out with its weird headlights, a first and last for BMW. None of the two variants were considered to be award-winning designs and didn’t add to the bottom of BMW sales, but the enthusiasts seemed to have enjoyed their athletic capabilities.