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BMW X4 M40i spotted testing in Germany

The stream of segment-busting BMW variants is showing no signs of letting up, and with the latest addition now upon us, questions have been circulating as to whether the Bavarian automaker would do an M version of the new X4 crossover. The jury may still be out on that proposition, but the latest intel suggests that, while a full-on X4 M may not be in the cards, a next-best-thing X4 M40i is in the works. And that appears to be what we're looking at in this fresh batch of spy shots.
Spotted for the first time undergoing testing in Germany, this X4 is tipped to be the next addition to the M Performance line that's already given us near-boiling models like the M135i and M235i on the one hand and the diesel-powered M550d, X5 M50d and X6 M50d on the other. Power in this case is tipped to come from the same 3.0-liter turbo six as the upcoming M2, producing between 360 and 380 horsepower.
Unlike the current top-of-that-specific-line X4 35i, which has two tailpipes on one side, this partially-camouflaged prototype has one pipe protruding from each corner of the rear bumper, but looks like it could easily accommodate twin pipes on both sides. Expect commensurate suspension, brake, rolling stock, aero and trim upgrades to come as part of the package, though they likely won't be quite as substantial as those applied to the X5 M and X6 M.

BMW ponders increase in i3 production capacity on early demand

The 2014 BMW i3 is not slated to hit US showrooms until the second quarter of next year, but the response BMW has received for the all-electric hatchback has been positive enough that the automaker is already considering boosting production capacity. Bloomberg Businessweek reports that more than 8,000 customers have reserved an i3 so far, which is high, especially considering that BMW only planned to sell 10,000 i3s total in 2014.
Talking to BMW CFO Friedrich Eichiner, the report says that if the demand holds for the i3, BMW would increase capacity accordingly. The i3 goes on sale next month in Germany before a global roll out in the US, China and Japan, and with a starting price of $41,350, it is priced slightly higher than current small plug-in vehicles offered in the US like the Chevy Volt, Ford Focus Electric and Toyota Prius Plug-in, though features more use of advanced, lightweight materials.

As US exports top 2 million, is America becoming the world's source of cheap cars?

North American auto production is booming with 2014 figures just shy of the of the 17.3-million vehicle record set in 2000. With more models being built on the continent, even more are being shipped overseas. Factories in the US exported 2.1 million cars last year – the highest number ever. About half of those went to Canada and Mexico, but more than ever have been heading to places like the Middle East and China. The upswing comes in part from from after-effects from the Great Recession, according to The Wall Street Journal. With a weak dollar and lower production costs after the financial crisis, building vehicles in the US was relatively cheaper and more competitive in the world. At the same time buyers around the world are going crazy for crossovers. According to the WSJ, BMW and Mercedes-Benz are already exporting the majority of their US production of these models overseas. Both automakers have also announced investments to expand production further here to send more vehicles abroad. Even Honda has been shipping more models out of the country than it imported here. There is a concern this international strength could start slowing because the dollar is strengthening against other currencies, though it's too early to know what the actual effect of this could be, according to the WSJ. "Of course, we closely watch currency exchange, but we don't make changes in production or allocation based on temporary fluctuations in the exchange rate," Ford North American boss Joe Hinrichs told the newspaper. Related Video: News Source: The Wall Street Journal - sub. req.Image Credit: BMW Plants/Manufacturing BMW Ford Honda Mercedes-Benz exports us auto production