For the past 15-ish years, the BMW 3 Series has offered loyal customers the chance to enjoy executive car trappings packaged in a chassis that’s a bit more playful than nearly any other compact luxury option. While the second half of that two-part promise has been increasingly attenuated by the growth of the 3 Series platform (and the inevitable weight gains that come with it), its cabin and features have largely held up their end of the bargain in making this small sedan feel like it belongs to a more upscale universe.

What, then, to make of the 2023 BMW M340i? It’s the first refresh of the brand’s most popular four-door to emerge from the new cost-cutting mindset currently ruling the roost in its native Munich.

The good news? Some of its best bits remain core strengths. The bad? Owners will be asked to tolerate a decidedly less appealing environment to benefit from the most intriguing aspects of the automobile.

The M340i represents the apex of the BMW 3 Series outside of the “true” M-car family, which means it’s bundled with the highest-spec features and equipment available from the model, and also ensures its most compelling level of performance.

One of the reasons I’d selected the BMW M340i as the mile-eater for our long-planned Yankees road trip was due to how well past iterations coddled and comforted despite being priced more modestly than larger luxury fare. With that expectation in mind, it was here that the refreshed 3 Series disappointed me the most.

The M340i’s cabin offers the clearest indication of where the automaker has elected to pull price out of the vehicle. On the center console the once sporty shift knob has been replaced by a vestigial nub that is flicked forward and backward to engage gears, while the gauge binnacle directly in front of the driver has swapped its cowl for a rectangular plastic screen that stretches flat and unremarkable across the dashboard to meet up with the same-size infotainment display.

The end result is a bland-looking instrument panel and an overall drop in the level of refinement, to the point where the car has trouble separating itself from better-designed cockpits in more affordable mainstream sedans. Throw in armrests and seats that feel stiffer and less supportive than past models, and it’s a step back for BMW in terms of the experience inside the passenger compartment.

Balancing that out, however, is the BMW’s excellent engine and transmission. It’s no stretch to say that this motor and gearbox combination are among the best ever offered by the automaker, a truly exceptional combination that has few peers in terms of power and panache. Yes, the sedan itself might err on the side of over-damping when it comes to how it handles real-world roads, but the smooth power that’s always on hand makes up for much of the lack of character and creeping comfort deficit inside the car. At the very least, a thousand miles of cruising in the M340i left me unexhausted, if not always impressed by its interior trappings, and I’ve no doubt that’s a repeatable experience in all manner of conditions.

In some ways, the M340i reminded me of the Yankees themselves. One of baseball’s proudest dynasties, the team is currently experiencing a bit of a bump in their season, as evidenced by dropping two of three games to the Chicago Cubs during our weekend visit. Even despite their struggles, however, the Yankees are an institution, and the bleachers were loaded with the faithful, certain that the team can pull itself to its previous heights. People still show up, the stadium is still packed, and there is still hope that the purse strings will once again loosen and an across-the-board winner will make it to the plate. In the case of the BMW 3 Series — also an institution — it’s likewise time to blast past the salary cap and invest in an interior fit for the slugging firepower sitting under the hood.