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Well, I used to have a slightly modified E36 323ti (2.5L six), and I can match the lap times with the F20 116i, so I would not be very surprised if a 118i could hang on to a 325i. The 116i falls short at high speeds due to poor aerodynamics, though. The top speed was significantly better with the 323ti.
And I am pretty sure the 118i wins the consumption competition against the 325i.
You will miss the sound, response and smoothness of the six.
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