This, the E36 M3 Lightweight, is a very different car from the standard E36 M3 3.0 which began production in 1992. To sum it up in a few words, this is the car that every BMW M enthusiast wants.

As the name suggests, BMW's main goal was to reduce weight, it did so by utilizing aluminum door skins, removing insulation and forged wheels, and substituting a carbon fiber trim. Leather seats, sunroof, stereo, tool kit, and air conditioning were all removed and unavailable on the M3 LTW. The total savings: 200lbs. lighter than the standard M3. Other steps were taken to enhance the performance and handling of the car. The top limiter was removed from the ECU (engine control unit), rear differential was increased to 3.23 from 3.15 (increasing low end torque), stiffer springs and a strut brace were installed (to make the car more rigid), and an adjustable air dam was included (to increase downforce in conjunction with the rear spoiler).

BMW's biggest problem, however, was trying to convince the American market (the only market in which the M3 LTW was sold) to pay more for less. Some of the 120 to 125 M3 Lightweights that were produced sat on dealer lots for more than a year, eventually selling for far less than their $46,900 MSRP (originally $47,900, but dropped once the car was released for sale). This price was far in excess of the standard M3's $34,000 MSRP. It was only recently that many BMW enthusiasts have recognized the M3 LTW and as a result, the car has become very sought after.

The E36 M3 Lightweight was produced only in Alpine White, with a unique flag decal on the front left hood, front quarter panel, right rear quarter panel, and trunk.