It’s official! BMW’s baby M-car

BMW has found its solution to the name for the M-division high-performance version of its 1-Series range.

The fastest version of the car maker's smallest car will be called the 1-Series M Coupe rather than M1 after it decided to preserve the name of its famous supercar of the late '70s.

The boss of BMW's performance subsidiary, Kay Segler, revealed the M Coupe name as well as other information in an interview on the company's official M-Power website. The site included an official teaser video of the car, though it still wears some camouflage.

Segler claims the M Coupe - the existence of which was reported by Drive back in January - will invoke the spirit of the original, 1985 M3 and compensate for the fact the range-topping 3-Series model has become too expensive for most driving enthusiasts.

"All models grow, have more equipment features and options which can be freely chosen," says Segler.

"Ultimately this is reflected in the vehicle dimensions, weight and price, too. This is why it is one of my most urgent goals to offer a small, affordable M model in the tradition of the very first BMW M3.

"We [M division] would like to reach a wider group, and at an earlier time in their lives."

BMW is divulging few details about the M Coupe until later this year, but it's will use a recalibrated and boosted version of the twin-turbocharged 3.0-litre six-cylinder engine used in the 135i Coupe.

Power should be about 260kW, giving the M model a clear advantage over the 225kW 135i. The engine's output will be transferred to the rear wheels via a six-speed manual, and a seven-speed dual-clutch automated manual is likely to offered as an alternative.

The M Coupe can also be expected to feature wider tracks, a ride height that hugs the ground closer, and a firmer suspension in comparison to the 135i.

The M Coupe will be the final variant of the current 1-Series range before the next-generation model that's due in 2012. With the 135i priced at circa-$75,000, expect the M model to cost closer to $100,000.

The M Coupe naming system follows the likes of the Z4 M Roadster and X5 M four-wheel-drive.

Enthusiasts can win a chance to be one of the first to drive the new M Coupe by registering their details on the m-power.com website.

The M division's next launch is later this year, when it releases its next-generation M5 - powered by a twin-turbocharged V8.