In 2006, the BMW 3 Series sedans and wagon underwent a full revision, giving birth to their fifth generation, also known as the E90 platform. The Sport Wagon is an elegant addition to the 3 Series for those who want more cargo space than the sedan affords, but don't want to give up BMW's traditional "ultimate driving machine" fun.

The engine is the heart of every BMW, and the '06 325xi features a 3.0-liter DOHC 24-valve, inline six with variable valve timing that produces 215 hp using the first mass-produced magnesium-alloy engine block. A new six-speed manual is standard, with a six-speed automatic optional. Driving an automatic, an Auto Channel tester achieved a 7.9-second jump from 0 to 60. The folks at Car and Driver managed 7 seconds with the manual transmission. While the EPA rates the Wagon at 20/27 mpg city/highway, two reviewers saw 19-20 mpg, while a third got 24 mpg.

With the Sport Wagon, Car and Driver recorded a 273-pound weight increase over the 330i sedan. A lot of weight savings came from both the engine castings and the extensive use of aluminum in the new suspension setup. But the Wagon has the added weight of BMW's excellent xDrive all-wheel-drive system, which is used in the X3 and X5 SUVs. xDrive electronically controls a multi-disc central clutch that starts with a 40/60 front/rear torque split and integrates the Dynamic Stability Control system to quickly adjust torque and traction front, rear, and laterally. Reviewers report seamless, transparent functioning that results in "pure sports car handling."

The four-seat Sport Wagon doesn't provide that much space, with 107 cubic feet of interior space (compared to 121 in a PT Cruiser) and only 16 cubic feet behind the rear seats. But buyers will get 0.80g of cornering grip and the great handling prowess of any 3 Series sedan.

The upgraded and innovative stability control system (DSC) incorporates ABS with rain brake support, which automatically wipes brakes dry in rainy conditions; brake standby, which sets the brake pads closer to the rotors and builds up brake pressure when the driver abruptly lifts his foot off the accelerator, anticipating an emergency move; brake-fade compensation, which increases line pressure when the brakes heat up; and, with the manual transmission, hill-start assist, which keeps the car from rolling on hill starts. The stability control system can be turned off, but not the ABS system.

The interior has more room, upgraded materials, and the traditional 3 Series' great front seats and seating position. Rear cargo loading won praise for its flexibility, with the whole hatch lid or only the hinged rear glass offering access. A panoramic moonroof that reaches backward to provide light and view for rear passengers is standard, as are rain-sensing windshield wipers.

If you're in the market for a sports car with a little more cargo space than a sedan, the fifth-generation 3 Series Sports Wagon will keep you smiling in all weather.