MUNICH, GERMANY - BMW’s X6’s entire first-year production run sold out in just a month. Now reports are that BMW is moving full-speed ahead into the CUV market, starting with the development of a new crossover based on their 3 Series wagon — tentatively named the V3, according to www.motortrend.com.

The automaker plans to dub the new V3 a Progressive-Activity Sedan. Spy shots show a vehicle that looks similar to the regular 3 Series, but with a raised suspension reminiscent of an Audi Allroad. A taller roofline also provides the crossover with improved passenger and luggage space, however just like the X6, the V3 will swap out its rear bench for individual bucket seats — meaning the car will only seat four people. Available with either rear-wheel drive or the XDrive system currently found on the X5 and X6, power is expected to come from the same range of engines as the 3 Series, which in Europe means a selection of four-cylinder, incline-six, and diesel options, according to Motor Trend.

According to reports, the V3 is part of BMW’s new strategy to offer CUVs across much of its lineup, and it will soon be joined by a V5 based on the 5 Series platform. The V3 might reach showrooms by 2012, though currently there is no word on which versions, if any, will be sold in the United States.