German Car Zone

As previously reported, BMW is working on a high-performance 1-Series model to slot below the M3. A new report out of the U.K. suggests the car — which will be based on the 135i — is the top priority for BMW’s “M” division in Munich and its new management team.

BMW hopes the new model will attract new customers who might otherwise be unable to afford any of the current M models. M division chief Kay Segler is said to be one of the biggest supporters of the idea. An BMW source told Autocar Segler, who oversaw the development of the MINI Cooper S, has made the 1-Series M a priority over building a competitor to the Audi R8.

Full article: LLN

in the new "AMS" interview mentions Kay Segler the autumn or end 2010, on which there is first information available (press).
car maybe introduced in spring 2011 - probably Geneva

But I will it be an M car?.

Do you mean, if it will wear the M badge, or if it will be a proper sportscar?

The first one.

quote from ams: " ...M-Variant - based on todays 1er Series."

So yes ^

I´m still not completly sure, as EnI and Scott have always said that is will be created by the M Division but wouldn´t have the M badge.

Problem:

M1 trademark has a certain cache. Marketing guys know it would not be wise to put such an important trademark on M version of 1er. But let's wait ...

The car will certainly be M engineered but the question remains what badge will it wear. M? CS? CSi? Tii? GTS? That's on marketing dept. & management board to decide - just like it was in the case of 3er / 4er / M3 / M4 for 3er coupe & cabrio variants.

Expect an upgrade of 135i Performance Package + Power Kit ... slightly reworked in M way, offered in standard package. The most work will be done on chassis & ECU - to fit M character better. No revolutionary solutions in engine area though since the development time is very short.

It's more of an after-thought. They are considering to offer a limited edition of the car (limited production) - to spark a desire for next generation sporty 1er (ie "tii").

The next generation of 1er - based on new platform - will be made with a sporty version in mind, and not being limited in production numbers. Therefore the chassis will be much more capable than current one - which wasn't made for possible M version.

But don't expect cheap M car. This sporty 1er will be far from being cheap & affordable. Sure it will be cheaper than M3 but ...

Btw, Mr. Segler said no M7 & Z4M - only M versions of 1er, 3er, 5er, 6er & the X5/X6. Sure he can not talk about Z2 yet.

More then certain tech the (driving) character is important for M cars.
No M hybrids & M electro cars & M Hydrogen cars in the near feature - but the cars will feature certain EfficientDynamics solutions. Also no diesels: but there will be diesel models with M-packages which in the future will be more functional than cosmetic (analog to Audi S models).
Different M cars will present different characters - according to the customer pool & segment they are in.

Mr. Segler thinks an affordable M car (like 1er M) is much more important for the brand image then an M supercar.

It looks like M3 GTS & Performance Parts for certain models like 1er, 3er, Z will have to do the trick for more race-oriented BMW drivers. While M cars will even more focus on double Dr. Jekyll / Mr. Hyde role: being extremely capable & drivable daily car which can become an extreme sports car via M button.

Also: Mr. Segler says the mos important goal in M GmbH is profitability in line with BMW Group "Number ONE" strategy. Profitability being more important than sales numbers themselves. And that M has to be more dynamic & flexible than ever.

Bye bye then to the M5 with KERS?.