Supercars are the stuff of dreams, but often become the cause of nightmares. To put it simply: it is not always easy driving a mid-engine exotic. One carmaker better known for hatchbacks and sedans dared to enter the world of supercars and offer something different. But no one was ready for it, and the car in question was seen by many as a flop. But as they say, “hindsight is a wonderful thing,” and it turns out this car may have been onto something.
Supercars used to say a lot about people. Yes, they said you were rich, successful, and liked living in the fast lane, but they also said that you had the nerve to try to reverse an expensive and rare V12 wedge of metal into a parking space using nothing but a rear window the size of a mail slot. This is why no one in their right mind would daily drive a Lamborghini Miura (perhaps aside from jazz superstars) and these types of cars were better left for a Sunday drive or a trip to the casino.
These types of early supercars are known to have temperamental, highly strung engines, high maintenance costs, an awkward driving position, and controls so heavy that only Arnold Schwarzenegger could operate them. But was there another way? A group of German engineers certainly thought so.
BMW has always seemed like a car company that wanted to get out more. Bayerische Motoren Werke has long made very good cars, but these have tended to be sporty and upmarket sedans and coupes. But as with the underrated hybrid i8 of the 2010s, and the gorgeous Z1 of 1989, BMW always likes to flex its creativity in the more exotic sporting world.
Going back to the ’70s, BMW launched an incredibly forward-thinking concept called the E25 Turbo; this supercar aimed to shake off the everyday image of BMW and show that Bavaria could do something a bit daring (even if it was actually quite sensible). Buoyed by the response to the Turbo, BMW decided that it could go into the supercar game, and maybe fix a few things that were wrong with it at the same time. The result was incredible…and seen as a bit of a failure.
Fast-forward to the 64th Paris Motor Show in autumn 1978. BMW Motorsport GmbH’s stand had a brand new white supercar to show off. It was called the M1 and it was a sensation. “Everybody was crowding around BMW’s new mid-engine sports car,” wrote the press. “The list of orders coming in exceeds even the wildest expectations — an American fan of BMW, just to mention one example, has already put in an order for three M1s.” That’s impressive, as the M1 had a sticker price of around $60,000—three times the price of a 323i.
The M1 was designed for racing, with an elaborate suspension featuring double wishbones at each wheel, plus gas-pressure dampers and two anti-roll bars, but it seemed curiously ordinary. This was backed up by the fact that an inline-six (rather than a highly-strung V12) sat in the middle. The 3.5-liter inline-six (code-named the M88) was based on a volume-production six-cylinder and topped with a four-valve cylinder head carried over from BMW’s CSI racing engines, developing 277 hp and 243 lb-ft of torque.
By the time the press got their hands on the M1, it was clear that this was not another moody and erratic supercar. From the moment you sat in the cabin, with its upright seats and easy-to-reach controls, to pulling off, there was something unusually straightforward about the M1. Those who have driven it talk of an easy-to-use gearbox, a comfortable interior, and a civilized ride. The M1 inspires confidence, is easy to drive, and offers a relaxed character without a suspension that will knock your fillings out on every bump. But despite all this civility, the M1 could reach 60 mph in 5.5 seconds, and top out at 161 mph. In terms of acceleration at least, that meant it was as quick as a V12 Lamborghini Countach LP400S. This kind of clever-yet-simplified thinking, which arrived at the same goal as more exotic machines, would become the blueprint for supercars of the future.
One could argue that the first car to really catch up with the M1’s groundbreaking approach was the Honda NSX. Fitted with a 3.0-liter V6 that produced just 270 hp (sound familiar?), the NSX didn’t need wild specs to impress. It was a clever and simple take on the supercar genre, with easy controls, a good view out, and the ability to sprint to 60 mph in 5.3 seconds (does that also sound familiar?). Cars like Audi’s R8 continued the theme, offering a daily-driver experience that borrowed some of the closely related Gallardo’s excitement and combined it with the sensible demeanor of an Audi A4 or A6. This helped the supercar go from being a weekend toy for the ultra-rich to something that anyone from social media stars to pop acts could buy and drive around town. But the M1 didn’t quite get the recognition it deserved when new.
But the M1 seemed to be besieged by bad luck. Even before it was built, BMW noted that it suffered a serious setback. Lamborghini was unable to assemble the new car as had been planned and so the company turned to Stuttgart coach-building specialist Baur. This was a significant complication, as the spaceframe was built by Italian company Marchesi, and the glass-fiber-reinforced plastic body shell by T.I.R., also in Italy. Giorgetto Giugiaro’s company ItalDesign assembled the basic units and added the interior, with cars then sent to Baur for mechanical systems and components.
The delays meant that homologation requirements changed, leaving the M1 with no racing series to compete in. The car died in 1981, just three years after it had been unveiled to such worldwide acclaim. In the end, just 435 were built, with reports suggesting 800 were originally planned. The M88 engine found a new home in the BMW M5 (E28) of the mid ’80s, meaning that the M1 was at least responsible for starting the super sedan genre.
Rarity and the realization that the BMW M1 was actually way ahead of its time have meant that these cars are now highly sought-after. You are going to need $385,000 to buy one of these cars (from any year) in good condition, says Hagerty. That puts it in the same ballpark as a 1979 Lamborghini Countach LP400S, which sells for $405,000 in good condition. The BMW M1 may have been a bit too different when it was new, but in 2026 it has secured its place as a legitimate supercar classic. This is one supercar that you could probably drive every day if you wanted to.
Sources: BMW, Hagerty
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