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BMW doesn't HAVE to produce a new M engine for each M car. I think the problem is that they HAVE a perfectly good M engine that is in the M3 that they aren't using in the 1er. Use that in the 1er if you're too cheap to develop a new engine (or chop off a couple of cylinders to make it 6 cyl, whatever)... that would still be purist M. The fact that they are weaseling their way out of the S65 in a 1er to prevent cannibalism to their beloved M3 is utter utter naff.
Hell... look at what they did with our Z4Ms... plopped in the S54 engine. Parts bin special? Yup. Cheaped out? Yup. Winning formula? Yup. Still a pure M.
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