The hatchback body style, known as the BMW Compact, was introduced in 1995 starting with the 318ti, being very popular in Europe but largely unsuccessful in North America. The "Touring" station wagon was sold in Europe from 1995, but was not available in the United States.DOHC engines were used across the range (except in entry level models, see table below), with VANOS variable valve timing introduced in 1993. The 2.5 L M50B25 used in the 325i models was replaced in 1996 with the 2.8 L M52B28, creating the 328 line. Another 2.5 L I6 engine, the M52B25, was reintroduced for 1998 but badged as the 323i rather than 325i.


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