The Ultimate Driving Machine with 60mpg fuel economy? The unthinkable has become a reality. Motoring Editor STEVE NELSON checks out the greenest BMW car.

PREMIUM brand car makers such as BMW churn out astonishing performance figures with a haste almost as indecent as the potential speeds of their products.

It's almost as if they have forgotten that we poor motorists seem to be forever under the gaze of speed cameras or doing our damnedest to stay within legal limits.

Rather than make more cars that are less likely to carry us to the wrong side of the law, they seem hell-bent on delivering something that little bit faster, more aggressive, with the edge on its competitors.

The arrival of a press release from any of the top players invariably means I will be looking down the barrel of a road weapon capable of extraordinary acceleration, with a top speed that's limited to stop me from actually launching into outer space.

But occasionally - and with an increasing frequency, it must be said - the big boys produce something at the other end of the scale that is equally remarkable.

The revised three-door BMW 1 Series 118d is such a car - the first from the German stable to achieve a combined fuel economy figure of more than 60mpg (60.1mpg, to be precise) and featuring new technology that cuts C02 emissions to 123g/km.

That plants it fairly and squarely into Band C for tax purposes and will keep you off the petrol forecourt for longer than most small hatchbacks.

The initial impression of the 1 Series is encouraging. From the front it is immediately recognisable as a BMW, arranging its long bonnet, twin kidney grille and vaguely predatory headlamps to good effect. By the standards of the 5 Series it's fairly conservative. From head-on, you could mistake it for a 3 Series.

The rear treatment lacks cohesion and is resolved as a sort of ersatz estate characterised by a worryingly small rear window.

Only in profile does the 1 Series look truly striking. Park one next to most other hatchbacks of similar size and several things are immediately apparent. First, the long bonnet gives it an aggressive front end worthy of a much larger car.

A noticeable "power bulge" suggested at the bottom of the doors adds to the impression of movement and energy, as if the whole car was a muscle in the middle of a flexing movement.

The cabin does a pretty good impression of the 5 Series, though it is bereft of the iDrive computer system. BMW has always believed that black is, was and always will be the new black, so it comes as no surprise that everything is rendered in its favourite non-colour.

Despite a stated intention to attract more female buyers - and it surely will - the interior is businesslike, the sort of car one could turn up in for a meeting.

Some old habits die hard. In common with most German manufacturers, BMW has long taken the approach that buyers are entitled to a car with minimal levels of kit as standard and must then select which extras they wish to add from a lengthy options list.

The already expensive label price can easily swell by several thousand pounds, a factor that any potential buyer should bear in mind.

Boot space is on the small side at 330 litres, although with the rear seats folded, it is a more competitive 1,150 litres. But driving around in a BMW with the rear seats folded rather defeats the point of buying one.

Front passengers have a reasonable amount of space, The driving position is excellent and biased towards a low-slung sporty set-up. Rear seat passengers have little room and the provision of three rear headrests instead of two seems optimistic.

Ride and handling is up to the usual impeccable BMW standards. The rear-wheel-drive system feels far more alive and responsive than the front-wheel drive system shared by the Golf and A3.

This is not a diluted version of what other BMW drivers are allowed to enjoy - it is exactly the same experience, albeit reproduced without the benefit of a huge power surplus.

Steering is magnificent - surely the best in the business - and you will instantly feel at home if you have been behind the wheel of a 3 Series model.

Essentially, this is a car that does not compromise. The chassis is so agile that it could comfortably handle an awful lot more power.

One other feature worth mentioning is the inclusion in the 2007 model of the Automatic Start-Stop function.

Standard on all transmission models except the 130i, the system automatically switches the engine off when the vehicle and the driver puts the car in neutral and takes his foot off the clutch.

To restart, the driver only needs to engage the clutch before pulling away. You won't use it every time you stop in traffic, and it can be switched off, but it does add to the car's fuel-saving features.

While we're on the subject of savings, BMW reckons that changes under the bonnet will mean the average 12,000 miles-a year driver of the new 1 Series can expect to save up to £250 off his fuel bill compared to the outgoing model.

In addition, for a one-off fee of £190 customers can choose to have their car covered by BMW's five-year 60,000-mile service package.

On the face of it, claims that the 1 Series is the most important small car since the launch of the original Golf are exaggerated. The 1 Seires is different, but not as innovative as it would like to think. What it sacrifices in practicality it recoups in driver enjoyment.

Either way, the 1 Series is going to be huge success and an important car. Its real significance lies not in its admittedly impressive driving dynamics, but in the way it re-aligns the dynamic of the compact car marketplace.

The 1 Series was always surely going to be the best-driving car in its class. But did anyone really expect it to have the some of the best "green" credentials, too?


At a glance

Model: BMW 118d (three-door)

Price: From £18,225

Power: 143bhp

Transmission: Six-speed manual

Acceleration: 0-62mph in 8.9 seconds

Top speed: 130mph

Combined fuel economy: 60.1mpg

CO2 emissions: 123g/km