It's thought the firm plans to develop a larger, more upmarket Mercedes SL-sized roadster alongside its Audi TT rival. And our images reveal the Z4 replacement will also be bigger than before, as BMW aims to tempt buyers away from the Porsche Boxster.
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As you can see, the distinctive proportions of the current car remain. A long bonnet and compact cabin confirm the Z4's classic front-engined, rear-wheel-drive set-up. Most of this prototype's black bodywork is designed to hide the production panels beneath. These are likely to retain the original 'flame-sided' Z4's swooping curves.
What's clear is that BMW bosses have decided against a Mazda MX-5 Roadster Coup-style folding metal roof. These pictures clearly show a new design for a fabric top which will be electrically operated. True to the firm's "ultimate driving machine" ethos, the new model is expected to focus on behind-the-wheel thrills. The engineers have focused on minimising weight to make the most of the car's performance and handling.
The engine range will be bolstered by the company's latest technology, and is likely to include turbo power for the first time. We can also look forward to a range-topping M-badged version with blistering pace.
With lots of new models due to be launched ahead of the Z4's arrival, BMW's typically long development programmes mean the newcomer will not arrive in UK showrooms any time soon. So while we are likely to see the roadster next year, it's not expected to go on sale here until 2009.
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