The BMW X3 may have played a crucial role in developing the burgeoning premium compact SUV segment, but the one that stated it all is staring to get a little long in the tooth. The new X3's dimensions will grow just a tad, and its styling will be shaped to reflect elements from the CS Concept. The basic shape will remain much the same, however the new model is expected to feature a more prominent grille plus new wraparound headlights.

Designers will also focus on improving the quality of the interior, as the new X3 will be facing stiff competition from the recently new Audi Q5 and Mercedes -Benz GLK. Production of the X3 will be moved to BMW's Spartanburg plant, where it will be built alongside the new X6 and X5.

Expect to see the twin-turbo 3.0-liter from the 335i make its way into the X3 range, as well as the powerful but frugal new 204-hp 2.0-liter turbodiesel. A new hybrid model is also tipped to be on the table. However, the current X3 will have to soldier on for a few more years until the arrival of this all-new model comes for the 2011 model year.