[414M3]

Obviously, every car manufacture charges more for more powerful engines. I've always wondered, does it actually cost that much more to develop and produced bigger, more powerful engines or is it just markup?

[jlstyle]

Originally Posted by msellars

Obviously, every car manufacture charges more for more powerful engines. I've always wondered, does it actually cost that much more to develop and produced bigger, more powerful engines or is it just markup?

They invest billions of dollars for new engines. It's not easy to develop a reliable, more efficient yet more powerful engine. And you don't just stick in a new engine to an old body.
You need to redo the body to hold new heart in optimum balance to optimize the performance. But I think we pay heavy mark ups for their fund towards new developments.

[Porschefile]

You can bet the R&D costs that went into the E9X M3 engine are way more than the 3 series engines, it is just whether they are trying to push the power/revs envelope or not. The 335i price actually isn't that much more than the 328i regardless of R&D (at least E90-E90) considering the 335i basically has the same engine with a bunch more parts such as turbo, intercooler and accessories.

[NYC6]

In addition, The N54/55 blocks are beefed up aluminum with iron cyl liners to withstand the boost pressure while the NA one is alum/mag one, the turbo plants have direct inj, At least in the N54 engines the crank is forged. Likely other things as well separate the two.

[username604]

What about the 330 vs 325? Aren't the engines nearly the same, but standard options different?

What about the 335is vs 335i?
Don't you think BMW charges more for that powerful 335is engine?
I'm not saying that's the reason the 335is costs more, but I think BMW factors it in.

[kmarei]

I can assure you a 335is does not have $7000 difference in parts, that's the difference in MSRP
There is a higher profit margin on the 335is than the 335i