By the time BMW of North America officially took the reins from Max Hoffman on March 15, 1975, the 2002 had already spent more than seven years winning over American drivers. With its sharp handling and rev-happy four-cylinder, it had built BMW a passionate U.S. following and played a pivotal role in making America the brand’s largest export market worldwide.
But even icons have an expiration date, and the 2002 was starting to show its age. Designed in 1965, it looked downright old-school by the mid-’70s. BMW had originally planned to replace it for the 1974 model year, but the intended successor—a two-door hatchback—was shot down by the sales and marketing team, led by none other than Bob Lutz. So, while BMW’s designers scrambled to rethink the new model, the 2002 soldiered on with a few updates: rectangular taillights, oversized U.S.-mandated bumpers, and emissions tweaks to keep it compliant through 1976.
That August, the wait was finally over. Enter the E21, the first-ever 3 Series. Designed by Paul Bracq, it had a modern, forward-looking shape but carried over much of the 2002’s mechanical DNA. For American buyers, BMW offered just one version: the 320i, powered by the same fuel-injected 2.0-liter M10 engine as the old 2002 tii. It came with either a four-speed Getrag manual or a three-speed ZF automatic.
But there was a catch. Stricter U.S. emissions regs meant the once punchy M10 had lost some of its bite. The 2002 tii had cranked out 130 horsepower and 130 lb-ft of torque, but in the 320i, those numbers dropped to 110 and 112, respectively. That wasn’t exactly music to the ears of performance-hungry 2002 owners looking for an upgrade.
BMW of North America’s PR manager, Tom McGurn, knew he had to win over the brand’s loyal fanbase. His plan? Let them get an early taste of the new car. As the press launch approached, McGurn invited members of the BMW Automobile Club of America (ACA) to drive the first U.S.-bound 320i models from Los Angeles to Carefree, Arizona, where journalists would later put them through their paces.
“We had to get the cars there anyway, so why not let real enthusiasts rack up the miles?” McGurn explained. “It cost about the same as trucking them, and we’d get valuable feedback. Maybe, just maybe, they’d start to warm up to the car.”
And warm up they did—though not without a little drama along the way. In November 1976, a convoy of ACA members set out from L.A., pushing their new rides with the same enthusiasm they had for their beloved 2002s. Their spirited pace didn’t go unnoticed. “A whole phalanx of us got pulled over and handed California Performance Awards—also known as speeding tickets,” laughed club member Roger Scilley. Another driver, Wayne Wundram, recalled, “I think seven of us got stopped all at once near Thermal!”
Despite the run-in with the CHP, the 320i made a strong impression. “The club members were thrilled,” McGurn said. “Sure, there was some nitpicking, but it was constructive. Overall, they came away impressed.”
Once in Arizona, the cars fell into the hands of the journalists who had helped make the 2002 a legend—including Car and Driver’s David E. Davis Jr., freshly back in the writing game after a stint in advertising. Davis liked what he saw, though he and other keen-eyed drivers noted the 320i’s tendency to lift the inside-rear wheel in hard corners—an issue that BMW would later address with the sportier 320iS.
“There was a lot of nostalgia for the 2002, even from people who had never actually owned one,” McGurn admitted. “But after a long drive, they came back convinced. It was fun, it felt like a BMW, and it delivered on the Ultimate Driving Machine promise. The enthusiast magazines gave it strong reviews.”
The buying public agreed. While some die-hard BMW fans stuck with their well-sorted 2002s—especially lamenting the absence of Europe’s six-cylinder 323i—the 320i found an even bigger audience. It became the car of choice for the emerging Young Urban Professional crowd—the Yuppies—who turned BMW into the ultimate status symbol. That association would become a double-edged sword in the coming years, but for the moment, BMW had solidified its place as the go-to brand for ambitious, style-conscious drivers.
From a scrappy underdog with a cult following to an automotive powerhouse, BMW’s American success story was well underway—and the E21 had set the stage for everything that followed.