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Why did the E26 M1 not compete in the Group 4 series?

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Why did the E26 M1 not compete in the Group 4 series?

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Group 4 homologation requirements dictated that at least 400 examples of the street-legal verison of each competition machine had to be produced within 24 months. Due to the difficulties in securing a subcontractor to produce the M1 and the subsequent delay that this caused, the M1 was not officially homologated until April 1, 1981. Because the Group 4 homologation took several years longer than anticipated, BMW created the Procar Series in which identical Group 4-spec M1 racers competed in the hands of established Formula 1 and Touring Car drivers as well as privateers.

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