When first seeing this, It was without a doubt an M1, however, I also felt a "yeesh" escaping my lips, however, after having a good look-over of the vehicle, especially in High-res format:
(
http://www.autoblog.com/photos/bmw-m1-homage/774730/full/ <-- lots of big pictures there)
I realized that there are a lot of really, really cool things going on in the concept.
It appears from the article that the pictures above went to, that this is just a design study, there isn't even an interior or a drivetrain to speak of.
A couple of things that I think are pretty interesting:
-The "floating" grilles and body panels on the car (use of solids and voids)
-The Headlight setup (homage to hidden/pop-up headlights)
-The whole rear end, very attractive in my opinion
-Beautiful rear 3/4 view
-The fact that the "flame surfacing" on the side of the car actually resembles air turbulence (like when using the smoke to look at the aerodynamics of the vehicle)
Some proportioning on the front of the vehicle still looks a little odd to me... But this is definately one that grows on you.
-Chase