Although BMW at first had great success with the Z4 when it was launched in 2002, sales have slowed down dramatically resulting in a cut of production.
To boost Z4 sales BMW is due to give the two-seater a slight makeover for 2006. However, the big news is that a coupe model is on the cards which could be on display at the Frankfurt Motor Show.
BMW is also already working on the next generation Z4, dubbed the E89. The E89 will go on sale in 2009.
Insiders suggest that the next Z4 will be similar in size than the current model but that BMW will tone down its design. It will also feature a wider track and better dynamic proportions.
BMW will also ad technical gizmos such as active steering, a new twin-clutch transmission that is due to replace BMW's SMG gearbox and of course the company's controversial iDrive system.
The engine line-up of the 2009 model will reflect that of the current range, but with increased power output figures. There will also be a normally aspirated 4-litre V8 unit which will develop about 330 kW.
If the forthcoming Z4 coupe is a sales hit, BMW will apparently include it from the start to its 2009 Z4 line-up.