Why no M3 motor for the 5 series? (archive)

We now know with a degree of certainty that the 528i is going to be replaced with a new 3.0 liter engine. Question is, why didn't BMW decide to offer the 3.2 liter engine from the outgong U.S. M3 instead? The old M3 engine had 240 hp, plenty of torque, was very fuel effecient, and was already federalized. It fits neatly in the gap between the 528i and the 540i, and is obviously affordable to manufacture, considering the M3's price.

What gives?

Follow Ups:

'cause they'd have to call it an M5! (e) PeteS 19:10 1/30/2000 (1)
- They could just call it a 532i! (eom) Robert A 23:13 1/30/2000 (0)
Probably because it closes the gap too much betw the 532 and 540's performance(nt). 17:20 1/30/2000 (1)
- Re: Probably because it closes the gap too much be Jspeed 23:23 1/30/2000 (0)

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