I think the new 1 series will fit well into the "premium brand" strategy that BMW has. The 1 series will likely be of extremely high quality, and when compared to similarly priced vehicles, (the honda accord ex, or the acura rsx for example), it should be leaps and bounds ahead of the competition in terms of technology. Don't forget that BMW has access to tons of high quality systems and parts from the 3 series and Z4 lines, that will undoubtedly make their way into the 1 series. Also, when you add the cost of necessary upgrades, (premium and sport packages, leather, etc.) I think that the actual price will land somewhere in the mid to high $20,000 range. This is consistent with the premium brand strategy in that it will produce not just another 1.5 liter compact, but the best 1.5 liter compact that money can buy. A natural side effect of this will be high sale volume, (a fact that BMW execs. are no doubt aware of).