The air wil need to be drawn from inside the front bumper. The filter will be placed behind the foglight. The piping does not go through the fender, rather through a hole which must be drilled behind the headlight. There is room; you just have to slide everything over a bit.
Please note: in this picture i have my fender liner removed for testing purposes. I installed a splash sheild to prevent water from getting the filter dirty. The AEM bypass valve can easily be used with my intake design. Just let me know and I will modify the piping for you.
Link to Image of the GMK CAI in 3" Carbon Fiber < this link will show you how my intake will sit in the engine bay
Image of location of GMK filter Filter installed