By the simple act of putting its biggest six-cylinder engine into its smallest car, BMW has built a spunky new hot rod—the 135i. The pint-sized Bimmer uses exactly the same inline 6-cylinder engine as the larger 3-Series-based 335i. It’s a 3.0-liter, twin-turbocharged and intercooled smoothie that makes 306 hp and 295 lb./ft. of torque. What’s most impressive about this engine is that it makes the same amount of torque from 1300 up to 5000 rpm. It’s very powerful, very flexible and very user-friendly. BMW says the little 135i will do the European 0-62-mph run in a scant 5.3 seconds, cover the standing-start kilometer or 5.8-miles in 24 seconds, and top out at an electronically limited 155 mph. The flip side of all that high performance is usually poor fuel economy. Not here: BMW estimates 30 mpg on the highway.

We drove the new 135i at the Gotland Ring racetrack on the island of Gotland in Sweden. And while a racetrack is the first place that shows off the shortcomings of any street car, the 135i was plenty of fun to drive. The chassis has a near 50/50 weight distribution. The steering, typical of BMW, was sharp and quick to react. The engine is instantly responsive and torque-laden. And the 6-speed manual transmission, made in-house by BMW, was a joy to use. At each corner are meaty 18-inch tires, 215/40 in front and 245/35 in the rear. On the road at reasonable speeds, the ride quality was excellent—taut but not too tight.

Inside the 135i, there’s a well thought-out cabin that looks nearly identical to the 3-Series. We drove a bright red car with a slick, black-and-red cloth interior, only to find out that the U.S. cars will come with real leather or leatherette only, and will have conventional bucket seats instead of the sports seats in our test car. Too bad, we were digging those cloth seats. The fast-sloping, cool-looking coupe roof appears to restrict rear seat headroom. Not so: A person measuring 6’4” tall can sit in the back seat with two inches of clearance between hair and headliner. Impressive.

BMW officials told PM that the car, although smaller in every dimension than the 3-Series, is, at 3432 pounds, only about 132 pounds lighter than the 335i. Odd? Not really, because the 135i isn’t a stripped-down. entry-level car. It comes with ABS, traction control, stability control, cornering brake control, electric power rack-and-pinion steering, an electronically controlled locking differential and huge, six-piston, 13.3-in. front brakes and twin-piston, 12.75-in. rear brakes.

Options will include AUX, Bluetooth and USB inputs for music transfer, satellite radio, adaptive headlamps, the iDrive control system and navigation. BMW will gradually introduce other models to the U.S., including the 128i coupe, a steel-top convertible, a 5-door hatchback and a 3-door hatchback.

Although no official U.S. pricing is available now, BMW estimates about $35,000 for the 135i and about $30,000 for the 128i when they arrive next spring.

—Jim McCraw; http://www.popularmechanics.com