Our favorite public source of inside information Scott26 (or Herr26 depending on the site) is back with more on the expansion of the X line-up. We ‘ve heard lots about the proposed X4 coupé. Now we get to hear some of the back story and further rumors of the X335is and an X3M. Yes the X3M. Here ‘s the report (originally posted by Scott26 on Bimmerpost):

>When X5 was introduced in 1999 We went straight to the top of the segment by offering the more car-like Sport Activity Vehicle. Customers appreciated that it ‘s core BMW attributes were enhanced and kept intact by the introduction of the X5.

>When we introduced X3 in 2003 We created a new segment for a premium medium class Sport Activity Vehicle. A car that sits below 700,000 units sold since introduction, and about to be replaced by the second generation X3.

>In 2006 we introduced the second generation of X5 and inherited the E53 X5 ‘s crown at the top of the segment. In Late 2007 we introduced a new Concept to the Sport Activity field, an SAV with the appearance of a Coupe and the worlds first Sport Activity Coupe. The BMW X6.

>Since the introduction of the X6, the original forcast of X6 sales was 40,000. Today X6 sales have doubled that target thanks to it ‘s blend of looks,performance and dynamism. X6 sales continue with sheer growth in each quarter with other key markets proving more popular than existing target markets.

>The success of the X6 led to the creation of the X6M mainly intended for developing premium markets both X5M and X6M have proved to be profitable for BMW ‘s M Division.

>The introduction of the X1 falls in line with BMW ‘s current small,compact and D segment strategy. And is the first model to develop the 1er product portfolio further. The quest for an entry level Sport Activity Vehicle that enhanced the youthfulness of the 1 series in the solidity of a typical X vehicle, begun with another new segment for the premium market.

>As X1 has brought customers from existing BMW products , X1 also has a higher amount of customers leaving other brands for the X1. X1 has also reached it ‘s target demographic and appealed to a younger customer base. Since it ‘s November introduction to the market, BMW X1 has sold over 40,000 units, highly significant for a volume model ahead of a US introduction in the near future.

>The second generation of X3 takes and progresses everything customers love about the E83. And reverse engineers everything they didn ‘t. New X3 brings a new fresher looking but taut exterior with an constantly improved and upgraded interior. Driving Dynamics improve to offer a more sporting drive and current technology signifies the X3 as a car of this era in fact then underpinnings are the first showing of the upcoming BMW 3er (F30).

>And for the future?

>BMW are keen to capitalize on the success of the X6 by offering a “downsized ” version of the X6 Sport Activity Coupe Concept with an X4, Designed in a similar concept to the X6 , BMW can make the X4 cost effectively by sharing underpinnings, interiors, engines, technology and manufacturing with the BMW X3.

>With the BMW X3 about to be launched BMW will hold an establishment period of two years to determine if the second generation is a run-away success. And if so they are in the process of evaluating an X3 35iS using the same engine from the relevant Z435iS and US only 335iS. And an X3M using the powerplant from the upcoming 1M. No decision will be made until the car is deemed to have had a successful market integration and customer demand is evident.

The idea of a X3M is actually a little less jarring to us than the X5 and X6M since the car will be lighter and smaller. However I can ‘t help but think that M would be better off focusing on it ‘s core products and perhaps a small roadster or two. Of course they may be doing it all. Dr. Kay tends to make no small plans.