As part of a strategy to counter Mercedes-Benz recent decision to offer its four-cylinder diesel models in North America by 2010, BMW is supposedly close to committing to bring the four-cylinder gasoline engine for the 3-Series to U.S. and Canada.

The 167 horsepower 320i and 120i are both strong sellers in Europe and BMW's project director Oliver Friedmann thinks that they may be strong elsewhere. The automaker's North American offerings "would have a desirable effect on many fronts."

When asked about the four-cylinder diesels offered in the 123d and 320d, Friedmann and others claimed that the North American market weren't quite ready for them, particularly for the 3-Series.

+ Edmunds Inside Line: BMW May Bring North America a Four-Cylinder 3 Series