bmw_logo.jpgAs previously reported, BMW is working on a high-performance 1-Series model to slot below the M3. A new report out of the U.K. suggests the car — which will be based on the 135i — is the top priority for BMW’s “M” division in Munich and its new management team.

BMW hopes the new model will attract new customers who might otherwise be unable to afford any of the current M models. M division chief Kay Segler is said to be one of the biggest supporters of the idea. An BMW source told Autocar Segler, who oversaw the development of the MINI Cooper S, has made the 1-Series M a priority over building a competitor to the Audi R8.

The car is rumored to be based on the 135i, using the same turbocharged 3.0-litre straight six, but producing more horsepower and torque. It’s possible the car could be called M1, but that would certainly create confusion with the 1980s supercar of the same name. Calling it 135 M could also be confusing, because there’s already an M sport package for the car by that name. So, for now, the model remains nameless.

As for timing, the souped up Bimmer will be based on the next-generation 1-Series, which will arrive a a 2011 model. That means the “M” version will likely be a 2012 or 2013 model. In any case, we can’t wait to drive one!