This is my take on BMW's current development philosophy
1. They screwed up and made the current E9X M3 to "weak" in their lineup. 430-450hp would have been a more comfortable target
2. Due to the N54/N55 being so good they have to hold it back so to speak as to not encroach on M3 sales
3. Considering that M cars are traditionally low volume sales what is preventing BMW from putting a V8 in the Z4M? If the M3 was at 430-450hp a detuned version would have been great for that plus the 1M
So with all that in mind BMW is just putting the N55 with LSD and calling it an M. I don't know if you guys are REALLY penny pinching but following MB's model would have been better. Everyone loves a high revving N/A engine.
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