According to iMotorMag BMW has succumbed to carmageddon and shelved plans for a Z4M.
They will, however, offer an M Sport pack that consists of a body kit (a la 135i) and an ECU reflash to liberate a few more ponies from the 3 litre twin turbo. Presumably this will translate to other cars in the BMW range with the same ebgine, too. Power is said to jump to 326bhp.
[ Source: iMotorMag ]