You dont really seem to grasp what the BMW D Division is about.
They were originally about creating a track car for the road. The E30 M3 was built as a road going DTM car. The brand has evolved over the years, some would say to the detriment of the brand, into a softer car, one that panders to those who dont want a race car. The brand has evolved, but its race heritage is still there.
But the M division has always been about creating "the ultimate driving machine" Its never cared about being the fastest, or having the most power. The sort of drivers that care about this, arent the M3s target market.
You say that for owners that dont track their car, theres little use for handling. But you have to remember the M3 is sold worldwide, and although you guys have mainly big long straight roads, elesewhere in the world, we can enjoy a good handling car without a race track. Heres the best example
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I have roads like those in the 2nd half of the clip about half an hours drive away from my house. Our meets are usually a race up to the top of one of these hills / mountains, and we go driving round the tight twisty rounds that snake through them. Its like having a miniature version of pikes peak on your doorstep. On roads like those, you cant even use the full 400bhp, let alone the 440bhp.
BMW has always been about creating a great driving experience. There are plenty of places elsewhere in the world where the handling can be enjoyed outside of the race track. And these will account for far more sales than the U.S. Market. BMW's biggest market is still germany itself.
The day BMW introduces the 4.4 V8 to tempt back buyers who bought a C63 because it had more power is the day i eat my hat, live on youtube lol. Its just not what the brand is about.
as for sales, the M division accounts for such a small percentage of their total sales, they just dont give a damn. WHen people are queing up to buy normal BMWs
What reason have they got to mess around and upset existing M3 customers trying to chase a few more ? Put simply, the M division doesnt need the extra sales.