BMW has begun work on an Audi R8/Porsche 911 competitor. To be called the BMW M10, this front-engine, rear-wheel-drive coupe would be the spiritual successor to the BMW M1 and BMW Z8. Though BMW has dabbled with carbon fiber in some of its recent designs, the BMW M10 would likely be almost completely covered in the material to keep weight around 3,000 lbs. Power for the BMW M10 could come from either the M3's 420-hp, 4.2L V8 or the corporate 5.0L V10 producing around 550 horsepower. It is expected both engines to be offered so that BMW could square off the BMW M10 against the Audi R8 and Audi RS8, as well as the Porsche 911 and Porsche 911 Turbo.