I personally think BMW is sandbagging with the 335i. I'm of the belief there will be a model in between the 335 and the M3 that will offer comparable power to the S4. It's definitely a compliment that the 335 can hang with the S4 for the most part but I think they are in different classes.
When you compare the n55 X3 with the 335 you see the 0-60 times are within a thenth and the X3 still weighs nearly 700 lbs more. I think BMW is leaving the door open for a near 5 sec 0-60 car (granted 0-60 isn't the best guage for performance but at least it is something tangible).
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