It was bound to happen: BMW is considering bringing back a four-cylinder version of its class-leading 3 Series, Inside Line reports, in part to counter Mercedes' recent decision to introduce four-cylinder diesel engines in its North American lineup during 2010, and to give buyers a near-luxury option for economy cars in this size class (essentially identical to the Civic and Corolla).

This can only be a good thing, as it would lower the price of entry to a wonderful car, increase its fuel economy, decrease greenhouse gas emissions, and likely perform well for its power ratings. The 1980's eight-valve 318i wasn't all that great for the time. But the 16-valve, 138 horsepower 1991 BMW 318is was a much better performing vehicle; that engine block held down the low end of the 3 series line up throughout much of the 1990s.

The report didn't specify if the company is considering bringing the 167-hp block from the 320i or if it's considering bringing a turbo four-cylinder diesel instead, though BMW project director Oliver Friedmann said in the report that North America "isn't quite ready yet for four-cylinder diesel Bimmers, particularly not the 3 Series customer."(Via AutoblogGreen)