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Lexus to use BMW 3.0-liter straight-six in next-gen IS sedan?

Here's a rumor so wild it needs a U.S. Fish and Wildlife permit. Japan's Best Car magazine reports that the next-generation Lexus IS will offer BMW's B58 3.0-liter inline-six as one of four powertrain options. That's the same engine found in the new Toyota Supra with 335 horsepower and 365 pound-feet of torque. What's more, the fourth-gen IS will resurrect the IS F model gone AWOL during the current third generation, and do it with the twin-turbo V6 from the Lexus LS 500. The current TTV6 makes the same 416 hp in the LS 500 as the 5.0-liter V8 did in the first Lexus IS F 12 years ago. According to the magazine, the other engine options would be Toyota's 2.0-liter turbocharged four-cylinder, a 2.5-liter for a hybrid model, and a 2.4-liter turbo. We don't know where that last engine fits in. BMW doesn't make a 2.4-liter, and Toyota appears to have retired all of its 2.4-liter applications. Ignoring that, the 3.0-liter straight-six looks like it would replace the current 3.5-liter V6 rated at 311 hp and 280 lb-ft. This wouldn't be the first time the Supra's engine has been ported to the IS. Lexus mavens will remember that two years after the introduction of the original IS in 1998, Lexus put the Supra's 2JZ 3.0-liter straight-six engine in the IS 300 — without the turbochargers, thank you. But Best Car's prediction would have zero relation to history. Those were both Toyota engines back in 2000, and even ignoring the power differential, the IS didn't compete with the Supra. Putting BMW's 3.0-liter in the Z4 and the Supra works because they are the same car. And again, even ignoring the power differential, the more powerful Z4 doesn't compete with the Supra. Best Car's scenario has BMW selling one of its best engines for use in a direct competitor to the 3 Series. Lexus would need to design an engine bay long enough to swallow an inline-six, not a bread-and-butter engine for the brand, yet still be sensible for three more compact powerplants. Then, assuming BMW and Toyota made the same deal as with the Z4 and Supra, the Lexus would be down by a healthy double-digit horsepower margin on its German foe. The new Supra gives up 47 hp to the roadster. Where's the upside? It's said the trim sedan will stay about the same size, on a wheelbase roughly four centimeters longer, but lose a substantial chunk of weight.

AC Schnitzer packs 400-hp, tri-turbo diesel into 1 Series

At first blush, this might look like your run-of-the-mill BMW 1 Series, maybe with a few modifications. What you're actually looking at is a monster hot hatch with 400 horsepower and 590 lb-ft of torque. From a diesel. For this year's Essen Motor Show – Germany's equivalent to SEMA – the Bimmer specialists at AC Schnitzer prepared the ACS1 5.0d concept you see here. Its selling point (if only it were for sale) is the combination of BMW's most powerful diesel engine and its smallest model. It utilizes the 3.0-liter triple-turbocharged inline-six diesel engine from the M50d versions of the 5 Series, X5, and X6 sold in Europe. That engine is normally rated at 376 hp and 545 lb-ft, which is already a ton of muscle. But Schnitzer has bumped up the output on both counts, and slotted it into a 1 Series hatchback. The result is a 0-62 time of just 4.5 seconds, leaving the M135i and M235i in a cloud of diesel soot. Of course, Schnitzer has plenty more to showcase at Essen this year, including modifications for the 3 Series, X6 M, and Mini JCW. And you can bet all the other major European tuners will be on hand at the expo to show their wares, too. But as far as outlandish creations go, this monster diesel hot hatch is what's caught our attention. Compact and incredibly powerful The 1-series by AC Schnitzer with impressive motorsport quality At first sight, you do not expect brute force from the BMW 1-series. So the performance of the compact Bavarian after the AC Schnitzer tuning experts have equipped it with the M50d power plant and impressive performance upgrade, is even more incredible. Originally designed for the 5-series, the "Diesel M-Technik" pack propels the 1-series a long way forward. The smallest BMW series now has an impressive drive concept from AC Schnitzer. After the performance upgrade, the concept engine of the ACS1 5.0d delivers 294 kW/400 hp and 800 Nm torque for generous thrust. Equipped in this way, it takes just 4.5 seconds to sprint from 0-100 km/h. The acceleration from 80-180 km/h is even more impressive: the ACS1 5.0d takes just 7.9 second for this. The smallest of the compacts, the 114i, is already impressive thanks to a power increase by 52 hp to 154 hp. The four-cylinder petrol engine of the 116i, thanks to motorsport technology, now delivers 204 hp instead of 136 hp. The same figure is also achieved by the 118i, which previously had 170 horses under the bonnet.

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.