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That may be, but I can't comment on cars we don't get. If they had in fact perfected the technology, why not offer it in their 4, 6, and 8 cylinder engines? Why do they just keep increasing displacement to enhance performance? I think BMW broke with the pack when they held displacement of their famous I-6 at 3.0 liters, while adding twin turbochargers. And look at how successful they've been...now they're doing the same thing with their V8s, with MB following in their footsteps, leaving the Japanese in the dust.
Although I see the benefits of F/I, I see huge flaws in your thinking.

First. BMW and MB have done nothing revolutionary here. Toyota's (2ZJ-GTE) I6 came out more then 15 years ago. BMW has wisely capitalized on this technology as concerns for fuel efficiency have increased in the public eye as gas prices have risen and the economy has fallen. As these concerns have spurred, 'large' displacement engines have become frowned upon. F/I is a cheap/effective way to increase power without the need to increase displacement. So instead of using new innovation to squeeze more power out per displacement, manufacturer's are slapping turbos and superchargers onto there existing motors. Yet, if it where all benefit and no drag I doubt the Japanese would avoid using it. The N54 was a great motor, but let's be real here, it had MANY reliability issues. BMW can advertise all day that the reasoning behind switching over to the N55 was for fuel efficiency reasons, but we all know it had to do with problems of the turbos. My uncle had 2 E60 535i's lemoned due to the same issue, misfiring in the turbo's. Now he is in a 2011 F10, we will see how the N55 performs. Also, you are incorrect when you say "the success of their twin-turbo's", as BMW has dropped the twin-turbo from the N54 and gone to a single for the N55. Yes, there are benefits to F/I but when you speak of the Japanese being left in the dust you are just speaking in ignorance. The German brands can afford to be unreliable, Lexus (Japanese brands) cannot.

Also. The 3.5L (2GR-FSE) on the Lexus IS350 returns 20/27 mpg, while the N55 on the 3 series returns 17/28, so I am failing to see what exactly you are going off about. An extra .5L is doing no harm, and for the most part is allowing for greater reliability on equal if not better efficiency. The use of "direct-injection" is an innovation that allows for more power and greater efficiency without increasing displacement.

This is no knock on BMW, I am a fan of their new engines and the use of F/I but to imply they have put others behind in the dust is just an incorrect assessment. I only used the N54/55 as an example because I have yet to here anything about Benz's new engines with F/I. The German's have done nothing revolutionary as of late with the application of F/I throughout there model line-ups. It is just a new trend, on the platform of already used technology.
 

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All good points Shirm, but the Germans are so damn good at engineering and design, if they're adopting F/I across the board, they must be onto something. Lag has been engineered out and so will poor reliability. Look at how immensely powerful these monsters are, and fuel economy over their N/A predecessors has improved vastly. I mean just look at the TT V8s in BMW and MB's lineup, they're all monsters. Now with the fire breathing Turbo I6 they're using in the upcoming 1 series M car making ~ 350 hp and 350 lb ft of torque, you can't deny how awesome these engines are.

American car companies are quickly moving to F/I, and I'm sure displacement will be ratcheted down to achieve better fuel efficiency.
 

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All good points Shirm, but the Germans are so damn good at engineering and design, if they're adopting F/I across the board, they must be onto something. Lag has been engineered out and so will poor reliability. Look at how immensely powerful these monsters are, and fuel economy over their N/A predecessors has improved vastly. I mean just look at the TT V8s in BMW and MB's lineup, they're all monsters. Now with the fire breathing Turbo I6 they're using in the upcoming 1 series M car making ~ 350 hp and 350 lb ft of torque, you can't deny how awesome these engines are.

American car companies are quickly moving to F/I, and I'm sure displacement will be ratcheted down to achieve better fuel efficiency.
As I said, I see the benefits of F/I, but it isn't a perfect trade-off. The huge horsepower monsters you speak of have achieved better MPG I agree, but the MPG with the turbo's is still shit. I usually don't look at 500+hp engines as the stepping stone. People who buy these types of cars don't really care if the car gets 17 in the city as opposed to 15. People who buy 3s and ISs on the other hand do, and I am still not convinced that turbo is THE way to go. F/I has been used for years, it isn't like BMW/Benz invented the wheel on this one.
 
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