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correct
I was thinking it but didn't type it for some reason. The M cars are limited by the series (3, 5, 6) they are based on. They take on essentially the same dimensions and general styling. They won't make a M3 with smaller dimensions because then it wouldn't be a e92 any more (or a e90 anymore, which is coming). They want to make the series's dimensions consistent because it allows the consumer to see a product progression and make choice easier. Also, the costs of r&d are distributed throughout a series rather than for a particular model.
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