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The 1 Series was launched globally in Autumn 2004 and shares many structural, chassis, powertrain, hardware and electronic elements with the larger 3 Series. The model was started to provide a lower point of entry into the BMW range as the 3 Series moved gradually up-market. Initially launched as a 5-door hatchback, a 3-door version was also launched in July 2007. The 1 Series is priced between the MINI and the current E90 3 Series. Because the coupe is the only rear wheel drive vehicle in its class, it is somewhat considered the successor to the BMW 2002.

The 1 Series coupe (E82) and convertible (E88) went on sale in the United States in model year 2008 as the 128i and the 135i. Other countries received the 120i and 125i in both platforms. The convertible, unlike the 3 Series convertible, uses a soft-top instead of a folding hardtop. This is lighter, cheaper to manufacture and preserves more trunk space than the folding hardtop would allow.

The 1 Series is the only car in its class to offer rear wheel drive, perfect (50:50) weight distribution and highly advanced independent aluminum suspension.

M version

CAR Magazine has asserted that there will be an M version of the 1 series, although BMW denies that the M1 nameplate will be resurrected in respect for the M1 supercar of the late 1970s.Instead, at the 40th Tokyo Motor Show in October 2007, BMW showed a concept version with the series designation "tii", a tribute to the famed vehicle of the 1970s.Elements of this concept have appeared in an accessory line from BMW that has been premiered at the Geneva Motor Show (March 2008). This "tii" model is seen in the recently released Gran Turismo 5 Prologue as well as the standard 1 series.

The vehicle is currently promoted by Kermit from the Muppet Show. There is a commercial in which Kermit drives a BMW 1 Series around in a desert making figure eights, showcasing the car's agile nature and playful handling.

BMW is showing a 3-episode web movie promo (filmed in Hamburg with a New York cast) that looks almost like a film noir and feels more like a mini–TV movie or film, with the main focus on the actors and more subtle appearances of the car itself. These episodes were made for viewing in Japanese movie theaters, but can be viewed via the internet.

BMW is also advertising the car using comparisons to its classic 2002, an iconic two-door from the 1970s known for its light weight and high level of performance (relative to the era).

BMW recently released a viral market stunt to promote the BMW 1 Series. The campaign centered on an online video 'mockumentary' called Rampenfest that chronicles the adventures of a small Bavarian town attempting to use a giant ramp to literally launch the new BMW from Germany to the U.S.

Racing

In 1998, a BMW E36 320d had won the 24 Hours Nürburgring, being able to drive very long stints. In 2006, a BMW 120d modified with a BMW customer racing kit available for 95,000 Euros, entered by "Schubert Motors" repeated a similar if not better result. It scored 5th in a field of 220 cars, many of them (Porsche 911 GT3, BMW M3, Lamborghini Gallardo, Aston Martin, Maserati) much more powerful than the 245 PS (180 kW) of the 120d, thus a significantly stronger field of competitors than in 1998. The racing version of 120d is called BMW 120d Motorsport and it weighs only 1,135 kg (2,500 lb) with a driver. It includes a 100-litre (26 US gal; 22 imp gal) diesel tank for endurance racing and has a maximum torque of 450 N·m (330 ft·lbf) at 3000 rpm - the maximum power, 245 bhp (183 kW) is at 4200 rpm and the redline is only at 5000 rpm.

Reception and awards

Jeremy Clarkson, and other journalists possessed a number of other complaints about the 1-series which were or are aesthetic, and have influenced sales demographics. At varying times, the 1-series has been described as having 'Bread-van' looks, or as a 'Shameless attempt by BMW to sell a badge rather than a car'. Clarkson in particular had described the average BMW 1-series owner as receiving the following assessment from his next door neighbours (on BBC's Top Gear) as 'hmm, he's bought an expensive car - he must be absolutely bonkers!' Clarkson went so far as to end his review for the Sunday Times with 'The 1-Series is Crap.'

Critical response has dramatically changed in recent years - the 1-series coupe and convertible have been described as 'returning BMW to its roots', and the 135i has been described as the spiritual successor of the original E30 M3 of the 1980s. Clarkson himself awarded the 2008 model five stars, and had the following to say: 'The 135 coupé is the best car BMW makes.' Generally, the 1 Series coupé is more popular with critics and fans than the hatchback model.

BMW 118d won the prestigious Green Car Of The Year Award in 2008 being the only performance oriented car with CO2 emissions and fuel consumption comparable to Toyota Prius.