BMW introduced a facelifted version of its 3-Series in 2001 and improved it to match its main competitor, the C-Class from Mercedes.
Ever since the 3-Series E30, BMW offered its compact segment contender in a station wagon shape, fit for those who needed a car for the family but didn’t want to give up to the sporty rear-wheel-drive feeling. When the E46 (fourth generation) came on the market in 1998, the Touring (station wagon) was already planned. By 2001, the car’s image was already old, and the carmaker already had the refreshed version cooked and ready to go.

From the outside, there were minor changes to the bodywork. The distinctive new look of the headlights, with a double curved line on the bottom, matched the new bumper. At the back, there were no changes to the taillights or the bumper.

Inside, the carmaker introduced new options for steering wheels and installed paddle shifters for the automated (SMG) transmission. The center console received more buttons for additional safety equipment (Dynamic Stability Control). A significant improvement was for the infotainment unit, which received a color screen for the navigation system.

The most important change was for the drivetrain, where a new engine lineup was introduced. The base model was a 1.8-liter unit, named 316i, which offered 115 hp. The most popular version was the 318i, which offered a 2.0-liter unit rated at 143 hp. It was the first 2.0-liter with four cylinders installed on a BMW since the first generation. Top of the range version was the 231 hp 3.0-liter unit, which could have been mated to a 6-speed manual with a rear or all-wheel-drive system. All versions were available with an automatic, 5-speed transmission.