Why does the BMW M1 have a mid-engine layout?

The BMW M1 was the first and only mid-engine car produced by BMW. What was the reason behind this engineering choice and how does it affect the car's performance and handling?

The mid-engine layout of the BMW M1 provides better weight distribution and balance, resulting in improved handling and agility.

The engineers at BMW wanted to create a unique driving experience with the M1, which led to the decision of having a mid-engine layout.

Having the engine in the middle of the car also allows for more efficient cooling and aerodynamics, resulting in better performance.