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According to latest reports, BMW’s M division allege that the their main priority on their list right now, is to create a “sub-M3″ model available in the market. This has lead to questions of whether there will be an M variant for the next-generation 1-Series.

The 1-Series model currently has a 135i version which is powered by a twin-turbo straight-six petrol/gasoline engine with 306 hp. Some sources say that the engine will be tuned to around 330 hp for the M version. When it comes to the BMW M1 moniker, a source says “The M1 name to us is a sacred thing for a car that marked an important turning point. It won’t be called the M1.”

The M version of the BMW 1-Series will face competition from the Audi S3 in Europe and is set to be priced at around €35,000. In the USA, the 1-Series M is likely to sell for about ,000 less…