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I'm no expert either but have been around this stuff for 20 years and have never seen nor heard of a dyno that reads or somehow estimates what an engine produces at the flywheel, only at the wheel.
It is well known that BMW sig. underrates their HP/TQ #s. 525 would be in the realm of 600 flywheel which is more in line with the power needed to record a 0-60 time of 3.8 seconds by a 2.5 ton vehicle as reported by Car and Driver.
I've seen where many BMWs put there advertised HP/TQ #s to the wheel as is also commonly seen with Porsche. I'm really doubting that BMW decided to change course with the M50i and be balls on accurate.
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