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Work on the new BMW M5 is gathering pace, industry sources have revealed to Autocar. M division is collaborating closely with the team developing the next 5-series, and plans to take the supersaloon fight to Mercedes’s doorstep with an all-new, fifth-generation 550bhp M5 in 2011. Mercedes is currently working on a ground-up redesign of the E63 that will appear in 2009.

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