The BMW M1 Hommage Concept was one of the most exciting concepts to come out of the German automaker in recent years and, rightfully so, many were enthusiastic about the prospect of an Audi R8 rival from BMW. Following the M1’s unveiling, it was reported that the mid-engine supercar had been green lighted for production, but a new report indicates BMW has reconsidered that plan.

Klaus Draeger, the BMW board member heading the company’s EfficientDynamics program, revealed to AutoTelegraaf that BMW is not moving ahead with its M1 production plans.

Instead, BMW will but a greater focus on the development of green technology. “That is our biggest investment in the coming years,” Draeger said. BMW is slated to launch clean diesels and hybrids in the U.S. in the coming months.

Although car enthusiasts will be disappointed to learn that BMW is not going forward with its R8-rival, the move is probably a smart one by BMW – especially in the wake of $4 gas. The M1 was slated to hit the market in 2012, just one year after more stringent CAFE regulations will take effect. Add in the growing green movement, and BMW might have made a very Honda-esque production decision.