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How could they become their own sub-brand? Their actions in the past year have been the opposite.
BMW have started putting M-badges on every car. The newest being the M-diesels and the F21 M135i.
I can see this becoming a short term money grab. The dilution of the M-brand will eventually bite them in the ass.
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That it of course your opinion. But in mainland Europe , M knows that there is a customer base who would not only like Performance from an M but also greater efficiency to offset heavy tax burdern but also all-Wheel-Drive for trips to many winter resorts and weather conditions especially in the Northern parts of Europe. To add all this to a conventional M makes it laden with more weight when customers are looking for less weight.
M Performance is the next best thing - The alternative. And in general interest and first orders, the F11 550d xDrive Touring is leading the pack.
In a way it is a money grab because M has to sustain itself in the long term and if BMW M Performance cars make M more specialised and experimental, then it will be worth it in the end.