There is a lot of consternation around BMW’s headquarters regarding the 1 Series. This smaller-than-3 Series vehicle shares its platform and powertrains with its slightly larger sibling, but comes only in a semi-station wagon five-door form that invites comparisons with hatchbacks from more mainstream automakers. It is a style that leaves most Americans cold – especially in its best Chris Bangle flame-surfaced form.

However, BMW needs a rear-drive vehicle below the 3 Series in both size and price that would attract new buyers to the fold, and keep those getting priced out of the market in the family. A 1 Series type of vehicle would be perfect for this task, just not in its present outfit. Something less severe and more fun – station wagons are not fun vehicles for most Americans unless they are old Ford Woodies or big block bad boys from the 1960s – is necessary. It would have to have the spirit and charm of the BMW 1600 and 2002, and be priced from a base of $25,000 to a high of no more than $30,000.

Mechanically, the 1 Series has a lot to offer. It is direct, sure-footed, and lively. The wheelbase is 100-mm (about 4.0-in.) shorter than the larger 3 Series, which makes ingress-egress from the rear seat – especially given the trendy door cut that slashes from roof to rocker – a real chore. Interior room, however, is acceptable. A taller, slightly more upright sedan or coupe would alleviate much of this problem by not forcing front seat passengers to recline as much.

BMW also should watch what colors it offers. The 120d in our possession is painted dark gray with a black interior, which caused much questioning of German suicide rates during long commutes. Americans want less dour color combinations, though the shape, textures and materials are, for the most part, acceptable.

The powertrain – a 2.0-liter common rail diesel with 163 hp and 250 lb-ft torque mated to a six-speed automatic – provides surprising acceleration and economy. BMW claims it will go from 0-60 mph in 8.2 seconds, top out at 135 mph, and travel 565 miles on a tank based on its 42.8 mpg Euro driving cycle highway rating. After nearly a week behind the wheel, I have no doubt those numbers are correct, that the in-gear acceleration and cruising mileage are better than most drivers would expect, and that American drivers could learn to love diesels.

But my mind kept wandering back the product planners back in Bavaria, and their dilemma regarding the 1 Series and the North American market. Could it succeed over here? Not in its present form. The styling is too unusual and contrived from some angles, and the wagon-like five-door body could never carry the production volume expectations. If BMW is serious about selling a vehicle in this range in the U.S., it will have to look to its past for an answer about its future. The 3 Series – the direct successor of the vaunted 1600 and 2002 – has become the iconic sport sedan/coupe/wagon in the premium market. Yet, it no longer meets the needs nor fuels the desires of those looking for a simpler, more direct and pure interpretation of this formula. An affordable and desirable 1 Series could fill that gaping hole in the bottom of its lineup. Unfortunately, I don’t think the Germans will ever build an affordable 1 Series “10” for this market for the simple reason that they will stop at “Nein.”