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The current 1 series didn't make much sense because it was almost the same price as the last gen 3 series, but now that 3 series is even more expensive and less involving to drive, the next gen 1/2 series will basically replace the traditional 3 series.
and of course, the traditional 3 series coupe will become the 4 series.
and of course, the traditional 3 series coupe will become the 4 series.
BMW's new naming strategy actually makes a lot of sense, as their lineup expanded vastly in the last decade, especially the amount of coupes (even if some of them are not really coupes - ie 6 series GT).