Earlier this week, BMW blew the covers off the first models of its new M Performance sub-brand, namely the M550d, X5 M50d and X6 M50d.

But that’s only the beginning as the German firm plans to expand the range to include if not all, most of its models including the 1-Series five-door hatchback, a prototype of which our scoop photographers caught while testing in Europe (albeit with a fake 118i moniker on the tailgate).

So far, the most powerful model of the new 1-Series hatch is the recently announced 125i sporting a 2.0-liter turbocharged four-cylinder gasoline engine that puts out 218bhp and 310Nm (228 lb-ft) propelling the five-door model to 100km/h (62mph) in 6.4 seconds and on to a maximum velocity of 245 km/h (152mph).

According to our sources, the M Performance version of the 1-Series 5d will be named M135i and will be powered by the same N55 3.0-liter inline-six gasoline engine with twin blowers found in the 6-Series models such as the new Grand Coupe 640i. This means it will produce at least 320-horsepower and 450Nm (331.9 lb-ft).

We don’t know yet if the BMW will get a rear-wheel drive setup or if, like the first examples of the M Performance range, an xDrive all-wheel drive system, but the grunt will be transferred to the road through a six-speed manual or an optional 8-speed automatic transmission.

The prototype seen here was fitted with a new body kit similar in appearance to the 1-Series Performance Concept car displayed at last year’s Frankfurt Motor Show.

BMW M’s engineers will also make changes to the M135i’s suspension and steering wheel settings along with the addition of more powerful brakes to improve its dynamics and handling.

The new M135i could make its global debut as early as this March at the 2012 Geneva Motor Show.

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