2007 marked the first significant makeover for BMW's smallest SUV, the X3. Launched in 2004, the X3 had had only minor cosmetic upgrades prior to the 2007 model year, which includes some more changes to its exterior and, most notably, more muscle under the hood.

The 2007 X3 gets an updated 3.0-liter inline six-cylinder engine and uses the latest variable valve timing technology. That results in 260 horsepower, a 35 point increase from the 2006 X3.