Mated to the small SUV X3, the top-seller engine of the brand in Europe goes to Australia although Ozzies could buy the engine already installed in the 120d. The 4-cylinder is now made from aluminium, saving 20 kg (45 pounds) on the scale and getting 10 percent better fuel mileage and it's claimed to work as smooth as a 6-cylinder by means of two balance shafts

The 2-liter engine is good for 125 KW (165 HP) and 340 Nm of torque (250 lb. ft.). Fuel consumption (European mixed cycle) is 7.0 l/ 100 km (33 MPG) and emissions, 185 g CO2/km. These are respectful figures for such a relatively hefty car, which comes with 4-wheel drive (called x-Drive at BMW) as standard.

Prices start at 62,900 AUD.

Full press release after the jump.

[Source: BMW]

A newly developed four-cylinder diesel engine, featuring third-generation common-rail fuel injection, will expand the successful BMW X3 model range in November.
Widely lauded for its superior agility and driving dynamics, the BMW X3 now also offers top marks in its segment for fuel efficiency.

The new BMW X3 2.0d, which is being offered for the first time in Australia, is the second BMW model, following the recently updated 120d, to benefit from the new all-aluminium four-cylinder diesel.

Developing maximum output of 125 kW and maximum torque of 340 Nm, the new BMW X3 2.0d offers a significant increase in power and pulling force compared to the previous engine.

Average fuel consumption in the EU test cycle is a very modest 7.0 litres per 100 kilometres.

The new X3 2.0d is exclusively equipped with a particularly dynamic six-speed automatic transmission.

"The new BMW X3 2.0d offers by far the best balance of driving pleasure and fuel economy in its segment, once again setting the benchmark against the competition," said BMW Group Australia Managing Director, Mr Guenther Seemann.

"The arrival of the new BMW X3 2.0d expands our diesel offering to six models and will consolidate BMW's position in Australia as the leading luxury supplier of sporty, dynamic, yet frugal diesel engines," said Mr Seemann.

Thanks to the latest innovations based on BMW EfficientDynamics and the outstanding competence of BMW in the development and production of power units, the new four-cylinder diesel is now able to offer the same standard of dynamic performance in a larger vehicle only a six-cylinder - at best - was able to provide in the past, while at the same time retaining all the advantages of a four-cylinder in terms of fuel efficiency.

Similarly, BMW's current six-cylinders rank right at the top in their segment in terms of both fuel consumption and emissions, even though they provide all the power and performance of an eight-cylinder.

The BMW X3 is fitted as standard with BMW xDrive intelligent all-wheel-drive technology and with the arrival of the new four-cylinder diesel will be available with two ultra-modern petrol and diesel engines.

The absolute pinnacle in terms of efficiency is the new BMW X3 2.0d, its all-aluminium four-cylinder diesel featuring third-generation common-rail fuel injection, with fuel being dosed by piezo-injectors and injected into the combustion chambers with absolute precision under a pressure of 1,800 bar.

Compared with the former engine, which was not available with the X3 in Australia, the new four-cylinder diesel offers a 20kg weight saving, an increase in power of 10 kW and a reduction in fuel consumption by 10 per cent.

The new BMW X3 2.0d establishes a new benchmark not only in fuel economy, but also in CO2 emissions, with 185 grams per kilometre setting a new standard in this segment.

The refinement of the entry-level model leading into the BMW X3 family has also been improved. To reach this objective, the balance shafts for the four-cylinder diesel take the specific layout and the space available in an all-wheel-drive vehicle into account, the two balance shafts running in needle bearings against the engine's direction of rotation being fully integrated at the side in the crankcase. This position makes the integration of balance shafts possible also on the BMW X3 equipped with xDrive.

Thanks to its unusually agile driving characteristics, the BMW X3 was an outstanding performer in its segment right from the start - and now the superior dynamics offered by the car is being joined by exemplary efficiency as the best prerequisite for continuing a remarkable story of success.

Sales of the BMW X3 in Australia have risen seven per cent in 2007 with 552 units delivered to the end of June.

BMW's premium SAV is the world's best-selling vehicle in its class, with production of approximately 114,000 units in 2006.

In Germany the BMW X3 accounted for a market share of 10.3 per cent in the offroader segment in the overall statistics for 2006, with numerous prizes and awards likewise confirming the great popularity and success of the BMW X3.

Only recently, for example, BMW's premium SAV was lauded as the "Offroader of the Year" in the readers' choice of "OffRoad", a specialist motoring journal. And readers of "Auto Bild Alles Allrad" also awarded the BMW X3 in both 2006 and 2007 "All-Wheel-Drive Car of the Year".

Standard specification for the new BMW X3 2.0d matches the high levels of the 2.5si petrol model and includes: Parking Distance Control (PDC) front and rear; Dynamic Stability Control DSC including ABS, ASC-X, DBC, CBC, DTC, increased braking readiness, fading compensation, dry bake function, Hill Descent Control; airbag for driver and front passenger with seat occupant detector; head airbags for front and rear; side airbags for front and rear; emergency spare wheel; toolkit with warning triangle; fog lights; Brake Force Displace with brake intensity geared to brake force (two stage); rain sensor with automatic headlight activation; roof rails; 17-inch light alloy wheels with 235/55 R17 tyres; leather upholstery; automatic climate control; ski bag; multifunction leather steering wheel; cruise control; AUX connection; preparation for mobile phone with Bluetooth interface; and, diesel particulate filter.

The range of paintwork options for the BMW X3 is also being enlarged with two attractive new BMW Individual colours Moonstone Metallic and Ruby Black Metallic.

Like the rest of the BMW X3 family, the new four-cylinder diesel is also available with the optional BMW M Sport Package featuring M Aerodynamics package, M leather sports steering wheel, 18-inch M light allow wheels, sport suspension, sports seats, Anthracite roof lining, high gloss shadowline and M door sills.

The recommended retail price for the new BMW X3 2.0d Automatic is $62,900.

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