BMW has confirmed a new tax-efficient, high-performance diesel engine for the 3-series.

Badged 325d, the new engine will bridge the gap between the 163PS 320d and 231PS 330d.

Details are sketchy, but the engine is thought to be either a twin-turbo development of the current 2.0-litre, or the more familiar six-cylinder powerplant associated with the '325' badge.

Insiders suggested the new unit will offer "six-cylinder performance with four-cylinder fuel consumption and emissions and costs".

Expect the new unit to produce over 200PS and sprint to 60mph in seven seconds while delivering more than 45mpg on the combined cycle.

BMW's Chris Brownridge said his company's diverse model range is key to the company's impressive fleet sales in the first half of 2006, outselling Toyota and 18.1% up.

"In the past 12 months we have launched 71 cars. Out of those, not one model grabs all of fleet business. Even on core 3-series models, not everyone chooses a 320d. There's the 318d and genuine tax-efficient petrol options like the 318i," said the BMW fleet boss.

Meanwhile, Bernard Bradley, BMW's former general manager, sales, has abruptly left the company, and is moving to Honda to take up the position of car sales boss from next month.

Bradley had been with BMW for more than four years, having also worked for VW, Volvo and Vauxhall. BMW hasn't yet announced his replacement.

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