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If you can mod the auto and that's what you really want, I'd do it. I can understand wanting more power.
If it's what you want in a car, I think the auto will be a great transmission.. If I'm not mistaken, BMW sources their 6-speed autos from GM. That's for 6 cylinder cars, but still. It should say a thing or two about their quality at least. And they'll be so consistent in acceleration runs you'll be likely to beat a stock LS3 Camaro most of the time. If you like driving an automatic and the benefits of them, there's no reason not to buy it.
But the paddle shifters won't be as fun as a true manual. My brother has a Grand Prix with the 4L60e with paddle shifters and it's nothing like a real manual. It doesn't hold gears, it overrides your shifting sometimes. It's just not the same..
And I have a GTO with a M6 and it's very easy to drive in traffic. LS engines have so much torque, you're not having to shift all the time like you would in a 4-cylinder car. Not to mention a manual makes you pay more attention to driving. Which is why we like performance cars.
About the fuel economy issue, I think that it'll vary. The M6 will depend on the driver for economy more than the auto. And Manual transmission cars are known for better economy anyway. Depending on how we drive it in the city, the M6 will have the edge there. And on the highway, the auto might make up for it.
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