The BMW 1 Series was first released to the public in 2004. BMW has marketed the 1 Series as a smaller luxury sedan. In keeping with BMW's record of classiness, the 1 Series continues the lineage of elegant design. The 1 Series is a rare breed though. Not only does it have rear-wheel drive, the engine is mounted lengthwise as well, a departure from the likes of the Nissan Altima and its longitudinal configuration. The 1 Series took the place of the 3 Series in BMW's lineup. Major changes were not made until the 2007 model year when a three-door hatchback version of the car was introduced.

Originally, the 1 Series was only available as a 5-door hatchback. The hatchback style was something relatively new for BMW and added to the overall appeal of the vehicle. It looked sportier than the average luxury sedan. The 1 Series has a 4-cylinder engine available in either 1.6L, 2.0L, 2.0L diesel, or an inline six 3.0L. This engine will produce around 300 horsepower. Also, transmission choice was a high priority for the maker. They offer either a 5-speed manual, 6-speed manual, or 6-speed semiautomatic. However, in the 2005 model year, BMW stopped producing the 1 Series with a 5-speed automatic. Buyers were generally going for the 6-speed manual or semiautomatic, while the 5-speeds were sitting on the sales lots.

In 2007, when the 3-door hatchback was introduced, BMW also made a few other minor changes to the body. The headlamps were slightly altered. The front and rear bumpers also received minor changes. However, the 2007 model year held more significant changes in the environmentally-friendly department. BMW introduced electric power steering and water pump and many drivetrain changes to assist in fuel economy and to release fewer pollutants into the environment. These green additions put the 1 Series in the "somewhat hybrid" category. It isn't quite completely a hybrid vehicle, but it is certainly on its way.

Late in the 2008 model year, BMW is set to release a convertible version of the 1 Series. Critics agree that with the addition of a convertible trim, the 1 Series could soon become the bestselling BMW on the market. Only time will tell. Also, in 2007 BMW introduced its coupe version of the 1 Series at the International Auto Show. The coupe has a twin-turbo gasoline engine, a huge upgrade from the 4-cylinder version. Lastly, BMW has done some incredibly interesting marketing. Kermit the Frog from The Muppets graces commercials for the 1 Series. Kermit has recently been promoting hybrid vehicles, being that he's green. Though the 1 Series is not fully hybrid, Kermit seems to think that it is close enough.