BMW – a dream car - is changing its performance and branding. Reports are that BMW will indeed release a special edition 1 Series towards the end of the model run in mid-2010. Expected to replace the 335i as the link between the M3 and the 135i, and is rumored to come replete with carbon fiber inserts and some sort of BMW Performance Body Kit. Sources conflict as to what sort of engine the M1 will receive, but the options have been whittled down to either a turbocharged 4-cylinder or, in keeping with BMW’s Motorsports Division tradition, a naturally aspirated straight-6. Still other Bimmer fanboys anticipate (albeit slightly unrealistically) a revised version of the twin-turbo I6 currently powering the F01 7 Series to find its way under the 2010 M1’s hood, in which case output would be rated somewhere above 330-hp.

Same report says that the look for the 120i to have as much as 240bhp and the 135i to feature the revised twin turbo 3.0L inline six current in the F01 7 Series, potentially producing over 330bhp.
In addition to drive train improvements, the car will make use of such materials as carbon fiber to lighten things up a bit. Specifically they mention carbon roof, boot-lid and a loss of certain cabin comforts. The car could also feature upgraded suspension, brakes and a unique body and it will feature the MotorSport badge. See when they BMW confirm these changes.

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