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Originally Posted by clbmw
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The AMG is not the 335i's competitor. Mercedes' C400 runs at 329HP.
The 2015 Audi S4 is already out with 333 HP.
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As for a PPK to reach the same output as their competitors' S and AMGSp models I would say that's not good business sense - it says subtly that your product is inferior from the outset. Maybe one for the M3/4 to compete with C63S might make sense.
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We are talking about BMW here. They release a brand new N55 engine in 2010 for the preparation of the F30 release, yet keep the power at 300HP. Meanwhile, Audi's S4 has been at 333-340HP since 2003. It does not phase them.
BMW is very Apple-esque when it comes to performance. They don't try to race to tout the fastest CPU/GPU/HP at the cutting edge, it's almost a disservice to do so -- valuing your worth on who has the fastest hardware will give the competition more ammunition to claim superiority. The focus is on driving experience and handling, just as Apple's focus is on software and the overall usability experience. I would not be surprised if BMW undercuts at around 320-325HP just to send the message that they don't need these numbers to compete.