The BMW X3 enters its fourth year of production flush with success, but there's more competition than ever among the smaller, more fuel-efficient SUVs. BMW's response is a stronger engine, revised styling, and more safety features, standard equipment and options.

The 2007 BMW X3 is available only with the new engine, a 3.0-liter six-cylinder. It also offers more torque and better acceleration than last year's engine of the same size yet at no cost to fuel economy. A six-speed manual transmission is standard, and a new six-speed automatic is a no-cost option and replaces last year's five-speed automatic.

The X3's drivetrain is equipped with BMW's xDrive all-wheel-drive system, Dynamic Stability Control and Hill Descent Control, revised for 2007 to give it even better grip and control in less than favorable conditions.