The first-generation BMW X3 was a 3-series–based crossover that attempted to combine the dynamic brilliance of a 10Best champion with SUV cargo capacity and aggressive styling. But alas, a 3-series it was not: Its goofy proportions, lofty price, and the deal-killing ride harshness of early models—which was corrected in later years—earned the small ute as much criticism as praise.

Bigger, Better Looking . . . and Lighter?

Now making its official debut, the all-new, second-generation X3 arrives with a raft of newfound features and technology wrapped in sharp new bodywork. Corona-ring running lights flanking the twin-kidney grille make the X3 instantly identifiable as a BMW, although we’re a little surprised that said rings are rendered in LEDs only with the optional xenon headlights. The most notable body-side features are the surprisingly large windows and the wedge-like fold that rises from the front wheels to the taillights and along which the door handles reside. Subtle creases around the fenders add a touch of strength to the wheel areas but stop short of overt flexing. The rear end adopts the clean horizontality of the X5 and similarly tasteful light-tube taillamps.

Predictably, the new X3 has grown, in large part to make room below for the forthcoming X1. Compared to its predecessor, the 2011 X3 is 3.4 inches longer, 1.1 inches wider, and a half-inch taller, with an extra 0.6 inch between the axles. Track width is up by a huge 3.5 inches, and the whole vehicle sits a half-inch higher in the air. Where the X3 doesn’t grow, however, is in mass: BMW says that thanks to extensive use of aluminum throughout the structure, the base 2011 X3 carries 50 fewer pounds than the outgoing model.

Eight-Speed Automatic, Available Turbo Six

BMW claims the base 2011 X3 xDrive28i can make it from zero to 60 mph in 6.7 seconds. That’s nearly a half-second quicker than the last X3 we tested, which packed 20 more hp than the xDrive28i’s 240-horse, 3.0-liter inline-six. Doing the same trick in a claimed 5.5 seconds is the new X3 xDrive35i, the first X3 powered by BMW’s direct-injected, turbocharged inline-six (the single-turbo N55 engine) with 300 hp at 5800 rpm and 300 lb-ft of torque from 1200–5000 rpm. An eight-speed automatic is the only available transmission. With two more ratios than the current car offers, we expect fuel economy close to the current levels of 16–17 mpg city and 23–24 highway—although BMW won’t provide official figures until closer to the X3’s arrival in U.S. dealerships, which the company promises by year’s end.

With the X3, BMW is also introducing the third generation of its xDrive all-wheel-drive system, which features greater integration of the stability-control system. The normal 40/60 front/rear torque split is controlled by an electronically actuated multiplate clutch that steplessly varies torque between the axles.