BMW says the key advantage to lasers are their efficiency. Where LEDs generate 100 lumens per watt, lasers generate 170 lumens per watt. When used in an electric car, laser headlights would draw less energy from the battery.

The use of laser headlights also has implications for car design. Each laser diode is only 10 microns in width, substantially smaller than the 1-millimeter-square LEDs used in car headlights today. BMW said in its announcement that its designers have no plans to reduce the surface area of the headlights on its cars, because that is an important styling cue.

But the tiny size of the lasers open up a lot of possibilities. Instead of a large, round piece of glass, a laser headlight could shine through the cross pieces of the car's grille, and so remain hidden when not in use. The traditional dual-headlight configuration would also no longer be necessary, as a row of laser diodes could peek out from the front edge of the hood.

As laser light is a coherent beam, it can be precisely shaped, and also changed at will. Instead of a separate high-beam lamp, lasers can be computer controlled to form a low-beam or high-beam pattern.

BMW mentions a few existing active headlight technologies, such as adaptive headlights, which use the steering-wheel position to illuminate corners, and its High Beam Assistant, which senses oncoming cars and changes the light pattern so as not to blind other drivers. Laser headlights could easily be programmed to handle these features.

Although BMW's laser headlights are still a few years out, the company is developing them for its i8 hybrid.

Details have begun to emerge about a planned engine swap deal between BMW and Toyota.

Set to be made public at the Tokyo motor show this week, the cooperation is said to center on BMW supplying Toyota with four- and six-cylinder common-rail diesel engines for use in a wide range of models. In return, Toyota plans to provide BMW with technology used to combine combustion engines and electric motors in various hybrid applications.

A BMW spokesperson in Munich contacted by Autoweek acknowledged talks between the two companies had taken place but, contrary to information provided by internal BMW sources, would not confirm an announcement was imminent.

Newspapers in Germany and Japan have reported that the automakers are prepared to announce the powertrain plan this week. Toyota and BMW labeled the reports as speculation and declined to comment.

BMW will offer a new product range starting this spring for customers who want the M Division look without all if the tradeoffs for comfort.

BMW M Performance Automobiles will offer engine variants, enhanced agility and more precision on the road, according to the company. BMW will present the M Performance Automobiles for the first time at the Geneva motor show in March.

"We are targeting our efforts at customers looking for more emotionality and more performance but who don't want to forgo everyday usability of their cars," said Frederick Nitschke, president of BMW M GmbH.

The range will include a variety of models, Nitschke said, as well as gasoline and diesel engines. BMW also says its xDrive all-wheel-drive system will play a role in the models.

This lightly tuned series of vehicles take inspiration from the 1980 BMW M535i. It impressed customers with extra power, tuned chassis technology and a subtly modified design. It wasn't until 1985 that the powered-up M5 hit the scene.

The BMW move is similar to Audi's S line strategy, which offers buyers the styling and interior upgrades of the R series of cars without all of the suspension and powertrain changes.