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Sources say that this engine could be tuned and tweaked for more power, but Lexus has been quite adamant that they won't get sucked into horsepower wars with their German competition
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Uhhh...since when are the Germans the ones leading the HP wars? BMW was trying to stay out of the HP wars as evidenced by the 330's 255 HP engine. It was Infiniti and Lexus coming out with 300+ hp cars that forced BMW to step up their HP efforts in order to remain competitive in the US market (where we like big hp numbers).
Am I wrong here?
That IS looks terrible. How the heck is that going to be an M3 killer? LOL cmon now.