If this rumor actually comes to pass (something that is far from guaranteed, to say the least), we're told to expect a 2010 release. Take it all with a very healthy dose of salt. That said, squeezing more power out of less engine is going to be a continuing trend as governments tighten the screws regarding fuel economy and emissions targets, so efforts from BMW in this realm wouldn't be the least bit surprising. We hope this rumor comes true, if only to be able to point to a shiny new 1-series coupe and say, "Ours goes to eleven... thousand."
[Source: BMW Blog]