Like the M535i from the other day, the 318ti continued BMW’s expansion of M branding to pedestrian models. That plan included inclusion of a new down-market economy model; the 318ti Compact. The new hatchback platform brought the pricing of the small executive into the teens (just), but the only engine available – the 138 horsepower M44 1.8 liter 4-cylinder – proved just adequate motivation. Though big brother power wouldn’t come to the chassis, the Sport, Club Sport and later M-Sport packages added BMW Motorsport DNA into the E36/5. Subtle styling revisions included M3 front bumper cover, revised rocker panels and a diffusor-inspired rear cover. The Club Sport and M-Sport received special mirror covers and integrated fog lights, as well, along with the M-Sport suspension. Inside, special sport seats with Millpoint fabric (red in the case of the Club Sport), along with an M branded wheel and shift knob, helped to remind the driver that they were in the sportiest of economy BMWs. And the basic package was fairly good to begin with, in spite of the power shortfall; Car and Driver rated the 318ti Sport second in its handling competition, though it should be noted that it lost to a front-wheel drive Honda.
These 318ti M-Sports have developed a bit of a cult following as a result, offering economy car sensibility and cheap repairs with M3 looks – and, for many, a great basis for motor swaps down the line: