The next generation of BMW's 5-series sedan is expected to debut early in 2010, perhaps at the Geneva Motor Show. The new M5, however, likely won't be launched until the 2011 Frankfurt show. According to Albert Biermann, development boss of the M division, when it does arrive, it will cut CO2 emissions by 20 percent compared to the current model.
To do that, BMW will follow an increasingly common path with direct injection, turbocharging and revised gearing. The M5 will apparently use a version of the 555 hp turbocharged 4.4-liter V8 from the X5M/X6M. The increase in torque from the 383 lb-ft at 6100rpm of the current 5.0-liter V10 to around 500 lb-ft at 1500rpm will allow BMW to use much taller gearing for lower engine rpms.

Contrary to some earlier reports, the M5 will not use any kind of hybrid or KERS system. Biermann told AutoCar that the hybrid system from the new ActiveHybrid 7 would add over 200 pounds to the car. Instead, the cars weight will be reduced further through the use of carbon fiber body panels for the roof and trunk-lid.

[Source: AutoCar]

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