According to Motor Trend, that because of the new Corporate Average Fuel Economy (CAFE) standards BMW's M division is its next generation M3 and 1-series M to ultra-efficient and light high-performance.That means, the next generation 2013-2014 M3 won't be powered by the current high-revving 4.0L V8. Rumors are on about a twin-turbocharged six-cylinder engine, but not the 3.0L twin-turbo in 335i and 135i. According to Ludwig Willisch, BMW's M division CEO, new turbocharged engine will be significantly lighter than the V8, therefore lighter overall. Willisch said "Engines don't need to be more powerful for the next car. As long as you have lighter weight, you have better performance." As for the 1-series M, there hasn't been much talk about a M 1-series. However, the new 135i is really like a M1, specially with that twin-turbo 3.0L inline-six packing 300 hp in that small body. Again, the next generation 1-series will behave differently. Throwing the six-cylinder, and replacing it with a twin-turbo 4-cylinder that also punches around 300 hp, but in a car that weighs only 2,860 pounds.Even worse, according to iMotor, BMW has cancelled the development of an "M" version for the new Z4 roadster with the retractable hardtop because of the "ongoing financial crisis" and "lack of customer demand". Also, the BMW spokesman included that the 300hp motor is pretty much enough for customers considering the financial crisis.
This is a sad day. Similarly, Audi's S-Line from S4 and S5 will be also converting to super light-weight, and tiny boosted 4-cylinder engines.
However, BMW is still on track with mad SUVs, like the upcoming X5 M and X6 M, which will be powered by a massive twin-turbo 4.4L V8, developing around 408 hp.