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My view is technology is a response to government regulations. In the late 1960's pollution controls became a requirement on cars sold in the US. Horsepower ratings and fuel efficiency plummeted. This was followed by fuel efficiency standards in response to the 1970's oil embargo and the phase out of leaded gasoline as a public health measure. The latter also allowed improved pollution control in the form of catalytic converters.
Automotive technology stayed in the dark ages until after several years of computerized engine controls electronic port fuel injection started to show up on production cars. 1992 was a watershed year as it marked the introduction of the LT1 V8 in the Corvette. That was also the beginning of the horsepower wars.
Today the real threat is unreasonable regulation of fuel efficiency because policy makers have elevated reducing carbon emissions to a religion. The only cars in production today that can meet the proposed 2025 US fuel efficiency standards are, electric, plug in hybrid and full hybrids like the Toyota Prius. These vehicles are purpose built for efficiency. They are too heavy and slow to be fun to drive.
The handwriting is on the wall. Look at the new active hybrid 3. It is $6500 more and 300 lbs heavier than a 335i. It manages to accelerate almost as well, but handling is likely to be compromised. Even assuming a 50% improvement in fuel efficiency overall it will take 10 years to recover the extra cost and then the vehicle will need a costly replacement lithium battery. By the way, nobody knows how to dispose of the spent lithium and the environmental consequences of manufacturing these batteries are not accounted for at the vehicle level.
There is also a proposal to require event data recorders in all cars sold in the US. These are presently only in cars made by the "big three" plus Toyota and its sub brands. Big brother will be watching you soon in your BMW.
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