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There will be a Z5 M. There wasn't one for the E89 Z4 model and it was a board member that stated it was a mistake which will be rectified with the next car.
BMW would never say there is an M car in the pipeline. That is counterintuitive to their whole stupid striptease thing with swirly stickers.
BMW M is brought in at the beginning to see if there is a viable business case and if so they proceed with approval.
So, these decisions are not usually done within the lifecycle of a car. With a seven year lifecycle BMW M cars are now introduced roughly a year from the base car launch, previously it was post LCI (Life Cycle Impulse).
To grow M they now have a longer lifecycle, so don't be surprised when the striptease of a Z5 starts with four exhaust pipes out back.
No V8, but a tweaked S55 under the long hood.
And they should make a track version (Club Sport?) with a fixed roof, improved cooling option, anchor points for a harness and lightweight wheels.
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