3. Manual transmission only. The prevailing rumor is that this is to ensure the 1M won't beat the DCT M3 around the track. BMW claims there was a "hiccup" in adapting the DCT, but this makes little sense given that the 135i already uses a DCT and the 1M is nearly mechanically identical to the M3. Of course, this also implies the manual M3 will be surpassed.
That's interesting, I thought they would have just beefed up the existing turbo engine rather than redesign the whole thing to put a V8 in there.