Autoblog and Yahoo may earn commission from links in this article.A Surprise HitWhen the idea of an M3 wagon was first floated about 25 years ago, then-current M3 owners weren't too keen on the idea. Still, a single E46 M3 Touring prototype was built as a proof of concept, although it would take decades before BMW finally gave the 3 Series Touring the full M treatment.Perhaps tired of Audi and Mercedes-Benz owning the compact performance wagon space, BMW finally stepped into the arena with the G81 M3. It ended up being a surprise hit for the M division, which makes one wonder which M3 owners BMW asked back in the day who said no to the idea in the first place. That said, it's forbidden fruit in the U.S.BMWSecond-Gen (Mostly) ConfirmedGiven the success of the first official M3 Touring, it'll probably come as no surprise if a second-gen model is underway. BMWBlog also reports that there's a codename for it, too. Dubbed G88, it's safe to say that it's the gas-powered model, too.AdvertisementAdvertisementAs BMW had previously confirmed, the next M3 will also be offered with pure combustion power, debunking previous rumors that it'll come as a plug-in hybrid. That should give it a significant weight advantage over the Audi RS 5, and as Mercedes will be canning the C 63 wagon soon, it'll be a two-horse race in the hot wagon market soon.For power, expect an even more powerful version of the 3.0-liter twin turbo, albeit with mild-hybrid assistance. Given that BMW will soon phase out the Competition models as 80% of buyers opted for that, we're bound to get strong versions right out the box, and we're expecting well over 500 hp for this one. Based on the previous generation, the second-gen M3 Touring could be all-wheel drive and automatic only.Crossing the AtlanticIt was also reported that BMW is exploring the possibility of bringing in more wagon models to the U.S. If so, the G88 M3 Touring might just be the ticket. The success of the G99 M5 Touring presents a strong business case for the smaller M wagon, and there has been clamor from the brand's fans to bring it in.The thing about performance wagon fans is that they seem to actually push through with the purchase rather than just saying they want it in the country and not buy it. That's what makes this niche unique and special, and one could say that BMW can guarantee a good number of sales should it reach American showrooms. It won't sell in the same numbers as the X3 or X5, but we reckon it'll have a strong following.Dennis Noten/FacebookThis story was originally published by Autoblog on Aug 4, 2026, where it first appeared in the News section. Add Autoblog as a Preferred Source by clicking here.