My old Citroen used to do the same thing too.
Not a problem, just does not make for lazy all day cruising.
Sideways was right, i am just too used to my slow reving big six.
110 on my 328 is just slightly above 2500 rpm.
But having said that, the 318 drives just fine for the trip to work and back. Nice and comfy, not lowered and on the stock rims, so i don't have to worry too much about pot holes and speed bumps. Looking forward to finding out how much a full tank will now take me. Getting very expensive doing only 400kms on a full tank with my 328.