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here is my take on the subject:
I have no ideea what the exact numbers are for the production of the bmw m3 vs m5, but I'd bet the later sells in much smaller numbers (maybe 10 to 1)? the same would sell an sts-v!
also, keeping in mind that the cts is smaller than sts, but tha SAME size with the bmw 5 series, it would make sense to have a monster cts instead of a sts-v, wich can destroy ANY competition.
 

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altough the ratio m3/m5 is much smaller than what I thought (based on how many I see on the roads), the m5 sales are STILL insignificant.
I really don't think there is a need for a 500hp sts, but a 500hp cts is another story:
it's the main ideea of muscle car or hotroding- stuff a huge engine in a small car!

also, if a cts is the size of a bmw 5, is it safe to assume that the sts is more or less the size of the bmw 7? now, with the exception of few alpina prepared series 7 in the past, it never existed a m7!
as a conclusion, the size of the cts is as big as you want to have in this exotic super-sport sedan class.
 

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700hp for any 4 door sedan is simply insane.
they should concentrate their efforts into the cts-v+ to bump the power up to 500 and refining some more the chassis. that's the way to beat the germans: by offering detroit grunt into a smallish chassis wich can perform.
 
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