SPY PICS: BMW puts finishing touches on its new baby

The car that has brought more new customers to BMW than any other model, the 1 Series, is about to get a complete overhaul.

BMW engineers in Germany are putting the finishing touches on an all-new, second-generation model.

Spy agency Carparazzi snapped this five-door hatch on local roads near BMW headquarters in Munich.

Wearing BMW's typical psychedelic camouflage, it seems that the new 1 Series will be an evolution of the current design.

The new model is expected to have a roomier cabin, particularly in the rear, which would address one of the few complaints of the current car.

Because of the 1 Series' rear-drive layout it has less rear leg room compared to its front-drive competitors which have a flat rear floor.

The current generation 1 Series went on sale in Australia in September 2004. Given that BMW model cycles typically run for about seven years, this should see the new model introduced locally in the middle of 2011.

However, the new 1 Series could break cover officially at the 2010 Paris Motor Show.

As with the current model, BMW is expected to release the five-door hatch first, with the coupe and convertible following two years later.

The current 1 Series is based on the previous model 3 Series' underpinnings. However, it is believed the new 1 Series will share its underpinnings with the next generation 3 Series, which is due to follow six to 12 months after the 1 Series goes on sale.

BMW Australia will not speculate on which engines will be available, but overseas reports claim there will be a range of frugal engines through to high output turbo engines for performance models. One thing BMW has ruled out, according to the overseas reports, is an M version of the 1 Series.

“It's far too early for us to comment on what the car may or may not have, and what engine options we'll take,” says BMW Australia spokesman Toni Andreevski.

More than 10,000 BMW 1 Series have been sold since the model went on sale locally. Indeed, the 1 Series is BMW's second biggest selling passenger car after the 3 Series.

Incredibly, 75 per cent of 1 Series customers are new to the BMW brand.

“It's our biggest conquest car, but we also have a lot of customers who are onto their second 1 Series,” says Andreevski.

Further, the 1 Series Coupe and Convertible are the biggest sellers in the sports car class below $80,000 -- despite being more expensive than most of the 18 class contenders. According to figures from the Federal Chamber of Automotive Industries, the baby BMW has a massive 25 per cent share of that market, the next strongest contender, a Mercedes, has 14 per cent market share.

Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at www.carsales.mobi