BMW is definitely building an M car based on the 1 Series. No details are available yet but it should go over the 322 bhp mark.

German webzine Auto-News interviewed BMW M Division Managing Director Dr. Kay Segler after the 24-hour race at the Nurburgring. Segler admitted that his unit was developing a baby M car based on the 135i. The car will aim to admit younger buyers into the M club, given how out-of-reach the current entry-level M3 has become.

The name M1 is out of question due to respect for the original supercar (1978 to 1981). The powertrain is also unknown but it is assumed to pack more than the 240kW (322 bhp/ 326 PS) offered by the special Performance Power Kit. It goes on sale in relatively small numbers from the end of 2011.

Meanwhile Segler also confirmed the new M5 will appear in late 2011. Its engine is based on the 4.4-litre twin turbo V8 found in the X5 M and X6 M. The two pack a formidable 408kW (547 bhp/ 555 PS), but the M5 is expected to top them. Speculators reckon there is between 427 kW (572 bhp / 580 PS) and 441 kW (592 bhp / 600 PS) in there.

Weight-saving measures like a carbon fibre roof are employed to help garner excellent performance and lower C02 emissions.

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