Remember the rumor we published a few months back about the M2 and the X4M sharing an engine? It’s looking more and more likely. Based our new sources, it would appear BMW M will be going down the same path as it did with the 1M by modifying a standard “series” engine in order to keep costs down. Given the success of the 1M and the abilities of the N55, it would seem like a safe bet.

However one thing to note is how BMW will market the new X4. Instead of calling it the X4M, BMW will label it a M Performance Automobile – the X4 M40i officially. Naturally this means that it will have dramatically less chassis modifications, brakes steering etc from a full-on M car. The M2 on the other hand will feature all of that plus a healthy dose of weight savings measures giving it bragging rights to the sacred letter.

The N55 based engine (code-named N55B30T0) will be available with both manual and automatic options on both the X4 M40i and the M2. Look for an output over 350 hp with plenty of torque on tap.

We’ll have more as we get it.