[Bumpinjeep]

It looks like a win-win situation from KITH & BMWs point of view.
KITH is getting brand recognition from a automotive giant while BMW is getting people looking at their cars that normally wouldn't. We're talking kids, rich kids and poor kids and more importantly, their parents. I would imagine that BMW is thinking that if kids are telling their parents about a hip new collaboration, the parents will cross shop a X3/5 with the Lexus that they were going to look at anyway. It's a weird synergy but i'm sure it makes sense because they wouldn't be spending money on it if it didn't.
And the M3/4 is a perfect car to do it with. It's an image car.
Let's be completely honest here, from an enthusiast standpoint, a 4000 lbs. car with an automatic transmission isn't exactly something you're lusting over. It's not an M5 with 600 horsepower and an understated body.
BMW knows that enthusiasts will be looking at the G series M2 and their subsequent special editions for future sales.
So if the bulk of their sales are SAVs, they're going to try to market as the cool SAV alternative.