Beamer below the $40,000 mark

By ALASTAIR SLOANE

BMW will launch its 1-Series hatchback range in New Zealand with an entry-level model priced at $38,900.

The car, badged the 116i, will be powered by a 1.6-litre four-cylinder engine producing 85kW and 150Nm of torque. It will be available only with a five-speed manual gearbox.

BMW has been wrestling for months with the factory in Munich for a sub-$40,000 price for the 1-Series.

The five-door, rear-drive 1-Series is the carmaker's entry-level range. It knew buyers would expect it to be priced below the $39,990 it asked for the three-door base-model 3-Series Compact.

It was faced with bringing in the manual-only 116i model 1-Series (the automatic 116i won't be available for about a year) for $38,000 to $39,000 or going with the bigger-engined 118i with its choice of manual and automatic gearboxes at more than $40,000.

"It all comes down to pricing and how much volume we can sell," BMW New Zealand marketing manager Mark McCutcheon said. McCutcheon is happy with the outcome. "To be able to include the 116i as our entry-model is a great boost to the range," he said.

"It means there will be a 1-Series model to suit the needs of almost all those who are considering moving up to BMW, or perhaps adding a second BMW to their garages.

The rest of the range is made up of the 95kW 2.0-litre (badged 118i), 110kW 2-litre 120i and diesel-powered 2.0-litre 120d.

The 118i is available with either a five-speed manual or six-speed automatic transmission and is priced from $40,900.

The 120i comes with the choice of six-speed manual or six-speed automatic gearboxes and starts at $54,900. So does the turbo-diesel 120d, also starting at $54,900.

There will be luxury SE specification available on the 118i. The 120i will be SE-only. The 120i and 120d will be available from early October, with the 116i arriving in December and the 118i in February.