BMW released a new version of the 1-series compact last year but a prototype of the hatch still lurks around German streets. The car looks like an typical 1-series hatchback but a closer look reveals several key features, showing that this is something quite different.

The 1-Series in the photo below is an early test for the next generation 1-series hatchback, most likely available in late 2011 or early 2012. Makeshift fender flares reveal the new model will feature a wider track both front and rear, confirming the next 1-series will be bigger than the current model. The larger footprint also improves the car’s dynamics and road-holding abilities.

BMW CEO Norbert Reithofer revealed that the 4-cylinder engines used in the next-generation 1-series will be the same  units developed jointly by BMW and France’s PSA Peugeot-Citroen for the Mini and a number of French models. The engines will range from 1.4 to 2.0L in displacement and will be available in both turbocharged and naturally aspirated forms. Expect to see BMW’s award-winning straight six engines also appear in the line-up.
The current 1-series has often been criticized for having a backseat no adult could be comfortable in, however the rear seat room in this new model is expected to be improved. This will also allow BMW to release a hatchback version of the 1-series in the all-important US market. This 1-series should also boost BMW’s sales in emerging markets due to its low entry price.

Expect to see stop-start and electrical-regenerative systems carry over into the new series as well as possible new EfficientDynamics technologies such as heat-recovery systems and solar panels. BMW revealed yesterday that initial testing of thermoelectric generators and solar panels on its cars showed savings of up to 5% in fuel consumption.

[Source: MotorAuthority]