After ‘greenlighting’ what’s known as the Progressive Activity Sedan (PAS) or  a “5-Series GT,” BMW CEO Norbert Reithofer has now confirmed that BMW is committed to launching a smaller version of the car based on the facelifted 3-Series in 2010.

Like the 5-Series based PAS, the 3-Series crossover will also come with rear-wheel-drive with four-wheel-drive offered as an option. What’s the difference between the 3-Series PAS and the 3-Series station-wagon? The BMW 3-Series PAS will sit higher than the station-wagon and will offer the two-piece liftback like the X6 and the 5-Series based PAS.

Engine choices will be kept consistent with the 3-Series range to help streamline production and will be mated to a manual or optional dual-clutch manual gearboxes.

AutoCar says that BMW stopped working on the X7 earlier this year due to the collpase in SUV sales in the U.S. Instead, BMW will now focus on smaller crossovers. We’re just wondering where all these smaller crossovers will fit next to the X1, X3 and the 5-Series and 3-Series station wagons.

Source: AutoCar