SHERIDAN, WYOMING – Feb. 19, 2025 – When BMW of North America assumed sales and distribution from Max Hoffman on March 15, 1975, the iconic 2002 had graced US roads for over seven years. Its agile handling and spirited engine had cultivated a devoted following, solidifying the US as BMW’s largest global export market. However, even automotive legends evolve, and the 2002, with its design finalized in 1965, began to show its age.
The 2002's Legacy and the E21's Arrival
While initially slated for replacement in 1974, the 2002’s production was extended when its intended successor—a two-door hatchback—was deemed unsuitable by BMW’s sales and marketing team, spearheaded by Bob Lutz. The 2002 received updates, including rectangular taillights and larger bumpers to comply with US Federal regulations. Finally, in August 1976, the 2002's replacement arrived: the first 3 Series, internally known as the E21. Penned by BMW design chief Paul Bracq, the E21 boasted forward-thinking styling while retaining familiar mechanical underpinnings. US customers were initially offered only the 320i, featuring the fuel-injected 2.0-liter M10 four-cylinder engine, previously seen in the 2002 tii, coupled with either a four-speed Getrag manual or a three-speed ZF automatic transmission.
Navigating Tightening Emissions Standards
Unfortunately, stricter US emissions standards had taken their toll. The 320i’s M10 engine, which had produced 130 horsepower and 130 pound-feet in the 2002 tii, now delivered a less impressive 110 horsepower and 112 pound-feet. This power reduction presented a challenge for attracting performance-oriented 2002 owners.
Tom McGurn's Ingenious PR Strategy
BMW of North America’s public relations manager, Tom McGurn, devised a plan to win over potential customers. As the 320i’s launch approached, McGurn offered members of the BMW Automobile Club of America (ACA) the exclusive opportunity to be the first in the country to experience the new 3 Series. “We had to get the cars to Carefree, Arizona for the press launch, and we had to get miles on the cars, so what better way to do that?” McGurn explained. “It was as cost-effective as trucking the cars, and we’d get club members’ feedback. Hopefully, they’d start to fall in like if not in love with the new car.”
The ACA Road Trip and its Unexpected Hiccups
In November 1976, twelve new 3 Series cars departed from Los Angeles, driven by ACA members, many accompanied by spouses or friends. Their enthusiastic driving style caught the attention of the California Highway Patrol. “A whole phalanx of these cars were pulled over to be given California Performance Awards,” aka speeding tickets, recounted club member Roger Scilley, who shared a 320i with his wife, Delight Lucas. Wayne Wundram, another ACA member, chuckled, “I think seven of us got stopped by the CHP all at once near Thermal!”
Enthusiastic Reception and Constructive Criticism
Despite the speeding tickets, the 320i was a resounding success with the club members. “Club members were ecstatic, and now I had contact with 30 or 40 people based around a really fun experience,” McGurn stated. “There was some nitpicking about the car, but it was constructive criticism. The overall reaction was very good.”
Journalist Impressions and the "Ultimate Driving Machine"
In Arizona, the 320i was evaluated by journalists, including Car and Driver editor David E. Davis Jr., who had been instrumental in the 2002's success. Davis appreciated the car, although he and other enthusiasts noted handling quirks, such as the tendency for the inside-rear wheel to lift during hard cornering. These issues were later addressed with the introduction of the better-equipped 320iS. “There was a lot of skepticism, a lot of nostalgia for the 2002, even sometimes without real experience of the car, because it was an icon,” McGurn reflected. “We had a long drive, and they came back very impressed. I think it fulfilled the promise of the Ultimate Driving Machine. It was fun to drive, and it had all the qualities that BMW was legendary for. The initial reviews by the enthusiast magazines were very positive.”
The 320i's Market Triumph and the Rise of the Yuppies
The public embraced the 320i. While some devoted 2002 owners remained loyal to their cars, lamenting the absence of the European-market six-cylinder 323i, the 320i attracted a new, broader audience. BMW of North America achieved record sales each year from 1976 to 1983. The 320i’s modern styling made BMW the preferred car among the rising “Yuppie” demographic. While this association would later present challenges, BMW was, at the time, pleased to be the car of choice for this influential and affluent group.
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