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Originally Posted by loihisteve
I doubt BMW would be spending serious R&D money to cannibalize one of their current models ... IMO, the 335 will simply be a new model, priced ~$9K above the 330i.
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This seems more likely to me, and ditto the coupe comment.
Perhaps BMW is looking at the MB strategy of having several AMG tiers for each product, rather than the one M model that BMW typically has (forget things like CSL for the moment). Maybe they want a broader spread of models considered to be "high performance" or in BM's case, that would be "higher performance"
Perhaps the engine was already in development for the M3, then they decided to put a V8 in because of Audi and MB, so they had this "surplus" engine development that would be a waste not to use in a model.
I guess only time will tell on this one...