It does not seem to be much of a downgrade if it is only 10 hp and 10 ft-lb. I am more concern about the 8 speed transmission since way too many on this site complained about the lag.

Nevertheless, has new engine specification been confirmed. I thought it was just rumors. Lets not read too much into it until BMW release the data.

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2012 BMW X5 Vermilion Red Xdrive35d with Premium Package, 3rd Row Seats, and Adaptive Drive