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BMW 535i Hybrid Test Vehicle spotted

There's been a number of reports about a BMW 535i getting around Munich wearing a sticker on the back stating 'Hybrid Test Vehicle'. We're not sure if it is true or if BMW is simply trying to create a stir, either way, BMW is expected to release a BMW 5 Series ActiveHybrid of some sort next year.
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If the'535i' badge remains on the production version, this means the car will come with a 3.0-litre twin-turbo inline six - for outright power - and an electric motor - expected to kick in around town. The combination will allow the luxury 5 Series to be both fast and economical, much like the Lexus GS-series hybrid vehicles.

According to reports, the BMW 535i Hybrid will come with a 40kW electric motor bringing the combined output to a meaty 265kW. Torque will also be improved significantly thanks to the electronic assistance - the standard 535i already offers 400Nm. All this is said to be channeled through an eight-speed automatic gearbox.

BMW has apparently said the ActiveHybrid system offers a 10 percent improvement in fuel economy, whether or not that regards the twin-turbo speculation is another matter.

A BMW 5 Series ActiveHybrid vehicle of some sort has been announced to go on sale some time in 2011. We'll keep you posted.