I have seen an article in Autosport today which just about confirms that BMW will be putting the M5 engine in the E46 M3.
The article reports on the BMW M3 American le-mans series car, which is powered by a V8 unit. This series is for production cars only - and hence the organisers have requested BMW to confirm whether they will be releasing a production M3 with a V8 engine within the next 12 months. BMW have yet to reply.
I personally can think of only one V8 unit that is likely to work well!
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