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I do not agree with the philosophy "We had to make room for the M2" I can't be sure if this is exactly how BMW sees it.
You have to make the product as good as it can be with the resources available and the budget every department in charge has for it. And obviously with the profit they expect for every unit at the Price planned for it.
If at the end, they managed to make a car that surpases the expectatives, like the M235i could've been, and menaces the M2, then it is an M Division problem to figure out how they will rise the bar even higher.
Is BMW afraid that the M division can't do that? Well, then there is a comfort zone problem in the M division.
Even if they made the M2 faster with more performance than the M4, and that is something menacing, then there is a problem of product planning.
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