The X3 combines the utility of an SUV with the sophistication of one of our favorite sedans: the legendary 3-series. There are two turbocharged engines—a 248-hp 2.0-liter inline-four and a 355-hp 3.0-liter inline-six. An eight-speed automatic with paddle shifters is the only transmission; all-wheel drive is standard with both engines. Adaptive dampers are an available option on both models and offer Eco Pro, Comfort, Sport, and Adaptive modes; we suggest it and the Dynamic Handling package.

BMW headquarters may be in Munich, but the German company is eager to note its manufacturing success in the United States. For more than two decades the company’s Spartanburg, South Carolina plant has built BMW products, including the Z3, the first-generation Z4, and variants of the E36 3-series. Today, the 5-million-square-foot facility is tasked with assembling mid-size (X5 and X6) and compact (X3 and X4) crossover SUVs, which includes the all-new 2018 BMW X3.

Like its Spartanburg-built predecessor, the third-generation X3 will be available with either a four- or six-cylinder engine. All-wheel drive, or xDrive in BMW parlance, is now standard, while a diesel engine option is no longer on the table. Four-cylinder 2018 X3s christened xDrive30i come equipped with a turbocharged 2.0-liter inline-four, while six-cylinder models bear the M40i nomenclature and sport a turbocharged 3.0-liter inline-six.