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AWD BMW M5 is headed our way

Remember the rumor about the BMW M5 going all-wheel drive? Well, there's definitely some truth there because these spy shots show BMW testing the Autobahn-storming sedan with the ability to spin the front and rear wheels. Our spy shooters grew suspicious when they saw this seemingly normal-looking M5 appearing to turn all four wheels during ice testing. They checked it out and snapped these shots underneath clearly showing power routed to the front axle. While this shows that the tech is at least being tested on a current-gen M5, all-wheel drive is probably not coming until the next 5 Series model, which is already being evaluated. The idea of power going to the front and rear axles for this sport sedan might polarize some hardcore brand fans as a break with tradition. However, the head of the M division thinks the change is a priority to actually put torque down effectively. The future vehicle is slated to get at least 600 horsepower and pack it into a lighter platform. Rear-drive M5 purists can take heart, though. The all-wheel-drive system would reportedly be an option, and it would be rear-biased to still let drivers hang the tail out, if the desire arises.

BMW 2 Series Active Tourer is the world's first front-drive Bimmer [w/videos]

While BMW has been showing concepts for its Active Tourer for over a year, they never seemed entirely real. Why would BMW, a company that has built its image on sporty, rear-wheel drive sedans, move into the five-door, front-wheel-drive market? The answer is still not entirely clear, but the new BMW 2 Series Active Tourer is very real. It launches in Europe later this year and is rumored to come to the US in 2015.
To brand purists, a front-wheel drive BMW may seem anathema to everything the company has built, and the production Active Tourer has clearly been built to provide drivers with a luxurious but utilitarian package first and foremost. It is 170.9 inches long and rides on a 105.1-inch wheelbase, but despite its compact dimensions, its high roof allows for 16.53-cubic-feet of cargo space with the rear seats up or 53.33 cubic feet with them folded flat. Its general appearance is nearly identical to the previous concepts, except with a blunter nose and cleaner lines. The front end wears BMW's traditional dual circular headlights and naturally, while the profile incorporates the company's traditional Hofmeister kink into the greenhouse's rear pillar. The interior has been designed to be especially useful with a sliding rear seat, adjustable rear backrests, fold-flat backrests and optional features like an automatic tailgate and panoramic sunroof.
Unlike both previous concepts, none of the Active Tourer models at launch use hybrid power. For Europe, the hatchback is going on sale with three engine options. The basic version is the 218i Active Tourer with a 1.5-liter, turbocharged three-cylinder with 134 horsepower that we just previewed in the 2014 Mini Cooper - good enough for average fuel economy of 48 miles per gallon in the EU cycle when equipped with a six-speed manual. The next step up is the 225i Active Tourer with a 2.0-liter turbocharged four-cylinder that makes 228 hp and offers 39-mpg average fuel economy. Finally, there is the there is the 218d Active Tourer with its 148-hp, 2.0-liter turbodiesel and 57 mpg average fuel economy on the EU cycle. A six-speed manual is standard on all of them, but there is a six-speed automatic option for the 218i and eight-speed automatics available for the 225i and 218d. All-wheel drive will be available on future models.

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