Bit of a misnomer. It's not full electric. Hybrid, yes. And being done to put out more power with less emissions. BMW also has a history of electric cars starting with the 1602 in 1970. An example would be the next generation of M cars (not the M package), will feature electric aided turbochargers to keep them spooled up at low RPMs, providing power at instant without any lag whatsoever. The next-gen M3 is rumored to also introduce water injection that reduced NOX and CO2 emissions. The funny thing with these various laws coming into affect is that they require the bare minimum of the car to pass the tests. BMW can disable the electric motor spooling the turbos and put it into comfort mode while keeping the water injection enabled. Once it passes, it passes. Water injection isn't particularly new technology either. Next gen M3 is rumored to have 500 HP stock, which I'm skeptical of.

The entire system with sport mode enabled which changes engine dynamics and the exhaust system. I can't comment on the current M models because I'm having a hard time finding one to my spec, but on my current BMW, the exhaust flap is controlled by an actuator that relies on certain engine dynamics.

I can't speak for Europe or most of the US, but in California an emissions test involves putting the car into gear and running it at a certain speed and RPM for a minute or two. Newer emissions tests just hook up to the computer and rev the engine or something of that nature without the car being put on a dyno machine.

While I prefer all engine, I have high hopes for this system. Though if it turns out to be true, I'd be interested to see what JB or Procede kits can do with some nifty mapping on the next gen M cars.