BMW’s pint-size 1 Series has drawn rave reviews (if not stellar sales) since its introduction stateside in 2008. As the smallest model in the famed German automaker’s lineup, the 1 Series delivers spunky performance in a tidy package. For 2011 the littlest BMW gets a host of updates aimed at maintaining customer interest ahead of an all-new design slated to debut next year. The 2011 1 Series is available as either a two-door coupe or a soft-top convertible. Two different inline six-cylinder engines are offered, both driving the rear wheels. Positioned below the bread-and-butter 3 Series, the 1 Series’ compact dimensions make it a ball to throw into corners as well as easy to park. Yet the 1 Series suffers from a decided lack of interior space, and its rather dear pricetag places it close to a much more versatile 3 Series sedan. For 2011 BMW has replaced a twin-turbocharged 3.0-liter six-cylinder motor with a newly developed single-turbo unit. Despite halving the squeeze quotient, output remains the same at 300 hp and 300 lb-ft of torque. The base (naturally aspirated) straight six carries over with 230 hp. Also new for 2011 is BMW’s seven-speed, dual-clutch transmission; it replaces last year’s conventional six-speed automatic. The new gearbox uses electro-hydraulic control to allow easy operation without a power-robbing torque converter. Two trim levels are available for the 1 Series. The 128i coupe and convertible feature the non-turbo inline-six motor and get full leather upholstery as a no-charge option. Also standard are 17-inch alloy wheels and rain-sensing windshield wipers. The 128i convertible gets a lined, power-operated soft top with electric heated rear window. Stepping up to the 135i nets buyers the punchy, turbocharged engine, 18-inch wheels, xenon headlights, and automatic climate control. The 135i also requires a major financial commitment; coupes start at just over $36,000 (roughly the same as a non-turbo 3 Series coupe), while the 135i convertible checks in at an eye-watering $40,350. For that much coin the 1 Series had better deliver a pretty special driving experience, and this being BMW, it does. Push the start button and the silky six whirs to life. The company’s famous inline engines positively purr; each press of the accelerator unleashes a smooth torrent of power accompanied by a muted snarl. At 3,200 pounds the 1 Series is rather heavy for such a small car, but the torquey six easily overcomes the car's mass to provide swift acceleration. Non-turbo 128i’s charge from 0-60 in just 6.1 seconds, while boosted 135i models shave a full second off that time, throwing passengers back into their seats on their way to a 149-mph top speed. While the new dual-clutch gearbox will garner much attention, enthusiast buyers should still opt for the conventional six-speed manual transmission. Featuring BMW’s signature smooth engagement and Swiss-watch precision, the stick shift makes extracting the 1 Series’ considerable performance a joy. While the newfangled seven-speed gearbox is quite competent (and actually delivers better acceleration numbers), it cannot match the sublime pleasure of matching revs on the traditional manual. Under the skin the 2011 1 Series’ four-wheel independent suspension uses the familiar BMW layout. The MacPherson strut-type front and multi-link rear arrangement is tuned for sporty handling. With its tidy dimensions and perfect 50/50 weight distribution, the 1 Series is among the best-handling cars available at any price. While it may not possess the ultimate grip of dedicated sports cars like the Corvette, the 1 Series attacks corners with terrier-like enthusiasm. Like most BMWs the 1 Series translates driver input to the road with almost supernatural efficacy. Likewise feedback is subtly transmitted back to the driver through the sharp, speed-sensitive steering and supple suspension. Braking is excellent, owing to large vented discs at all four wheels with ABS control. As a performance machine the little 1 Series gives up nothing to larger, more established cars. Yet as a daily driver it stumbles badly. While the Europe-only hatchback possess a modicum of utility, the coupe and convertible we get here in the U.S. are simply too small and lack versatility. Though the front seats possess good legroom and a wide range of adjustment, the narrow cabin limits elbow room and generally feels cramped. Rear seat space is negligible; even small adults will become close friends with the headliner and front seat back. Cargo space is also woefully inadequate, especially in the convertible. While its tidy dimensions make parking a snap, this is not an effective urban errand runner. In addition to being quite cramped, the 2011 1 Series’ interior is a bit of a letdown in terms of style. The hard black plastics and dour design can’t match the high standard set by competitors like the Audi A3 and Lexus IS. Although ergonomics are quite good (due in large part to the deletion of the infernal iDrive system), the cheap finishes simply don’t belong in such an expensive car. The no-cost leather upholstery scores some points, as does the newly standard iPod integration, but the nickel-and-dime options list means you’ll pay extra for items like power heated seats, an alarm system, and parking sensors. Overall the 2011 1 Series earns top marks for performance, handling, and style. It’s perhaps the purest expression of the vaunted BMW experience that can be purchased today. Running a 135i stick shift through the gears on a winding road is a singular, transcendent experience. But this particular brand of automotive nirvana simply costs too much, in both dollars and lost practicality. Most buyers would be better off stepping up to the more well-rounded (if slightly less thrilling) 3 Series. Though the American marketplace has reacted poorly to hatchbacks of late, one wonders if many of the more utilitarian (and less expensive) European variants of the 1 Series might be welcome on this side of the Atlantic.