The reason you are losing revs, the engine is being protected. BMW is clever. They've programmed the ECM to govern the engine performance. In doing so, if the engine sensors report a problem, the ECU with have the car in a type of SAFE MODE. It will not clear. You'll need to see your friends at BMW, or a BMW independent technician.
Could be a lot of things...but a common problem with the m series is the "cyclone valve", BMW' s fancy name for pcv valve. If you live anywhere it gets cold, they tend to freeze up and crack the diaphragm inside the valve. Of course they wear out as well. A symptom of this condition can be white smoke coming out of the exhaust, indicating fuel still being unburnt. You can also buy a winter package that consists of insulating wrap, tye straps and a bunch of other useful stuff.
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