Following a mid-cycle facelift performed in 2007, the next generation BMW 1-Series is due to arrive in 2011. Prototype mules using the current 1-Series body (E87) have already been spotted testing around Germany – but now we caught the real prototype in full glory – or better: BMW’s typical psychedelic camouflage.

Despite the early stage of testing, some details have been revealed. According to BMW's product development chief, Klaus Draeger, BMW is keeping to the recent philosophy of fast developing new segments. Although a decision has not been made yet, the new 1-Series lineup may feature an 'estate' hatch variant. Such a variant, which can accommodate adult size rear passengers unlike the current 1-Series, would allow BMW to offer it to the US market.

The existing BMW and PSA Group alliance which already produces engines for MINI would build engines ranging from 1.4-litres to 3.0-litres for the 1-Series. Turbos are most certainly on the list, but an M version of the 1-Series is out of the question again. Instead, we are expecting green models such as low-polluting diesels and certainly a hybrid!