Earlier this year, the Bush administration surprised a lot of green activists by actually surpassing the already challenging CAFE standards for 2011-2015. While automakers like Toyota, Ford, and GM are quietly going about the business of hitting those targets, BMW is speaking up and saying that the targets are unattainable. The German automaker has asked the Bush administration for an alternative plan that helps out the hardest hit automakers, and the new rules are a punch to the gut for the Bavarian Motor crew.

While the corporate average for cars and trucks is 35.7 mpg and 28.6 mpg by 2015, BMW has to hit 37.7 mpg and 31.7 mpg, respectively. The reason for the disparity is the sliding scale the government used to account for differences in size in each automaker's lineup. Since BMW doesn't sell pickup trucks and it has plenty of small and midsize offerings, BMW has to hit higher fuel economy standards. What the CAFE numbers don't take into account is the fact that all BMWs are RWD, and there isn't a four cylinder engine to be found (in the U.S., yet). The Bush administration says its final fuel economy numbers will become public by the end of the year, and if companies like BMW don't get special dispensations, look for there to be smaller engines on the horizion, or bigger fines.

Source: Automotive News

I think it means they'll bring some smaller engines to market... i mean they already put the non-turbo V6 in the 3, 5, X3, X5.  might as well put an economical I-4 in the 1series and 3 series at least.  Like its been noted in the past... people aren't buying the bimmer for the performance factor anyway... just name brand

U.S. is the only place with CAFE restrictions

yeah but how would them putting 4 cylinders in cars here affect their brand image overseas?  or is that not the point?  I guess I'm missing your original point... maybe. 

I was under the impression that the target audience we were discussing was only the US since CAFE is the topic of discussion and it has little to no bearing on what they can or will offer in their European models or other markets.  So I'd at least agree with Brandon his blanket statement was aimed at the US market, not BMW globally, even though he didn't specifically say it.

Anyway, back to the main topic, considering that they have a whole slew of small displacement and diesel engines available in Europe, that don't make the power the standard engines offered here in the US do, I don't see how that would change anything regarding the brand's image abroad.  They'd just have to make sure those engines could be certified for sale in the US.

I was looking at BMW.co.uk and they offer a 1.6l petrol engine for the 1 series hatch.  Yeah, it only makes 122 hp and is a 10.2 sec 0-60, but it also offers 34 mpg city and 53 mpg highway, urban / extra-urban.  I'm assuming its safe to say that would match nicely to our efficiency standards.

I don't see why they wouldn't bring those engines here. 

But isn't that what Brandon was saying too?

LOL, ok.  I was more confused by you two going back and forth and it made it seem like you were arguing the point rather than defining it.

In any case, I don't see why they don't look into certifying and bringing their small displacement engines to the US.  If they sold, CAFE issue solved.

After re-reading the entire post, I think Ohm and I were arguing the same point, we just didn't realize it.  I think it comes down to brand image.  BMW doesn't mind the "snobby" image it has, because people have to pay for the snobby image.  I assume THEY think that if they sold a 4cylinder or a diesel in the states it would be need to be cheaper, therefore allowing in people that just want to say I drive a BMW... look at my key fob, look at this awesome t-shirt and hat!  They don't mind those people being around, cause they've already paid $$ for their car.  So essentially they solve both problems if they bring a diesel or 4cylinder to market and overprice it, IMO. 

You could say Infiniti has the same issue... they could probably sell a heck of a lot of 2.5L G35's if they wanted, but they'd sacrifice brand image and possibly cannibalize altima (or some other FWD nissan sales)