Released at the Paris Auto Show in 1992, this is BMW Motorsport's version of the E36 3-Series Coupe. Motorsport based their 3.0 I6 engine on the 2.5 I6 found in the E36 325i and E34 525i, increasing bore and stroke and introducing a new technology called VANOS (continuous variable valve timing on the intake camshaft).

The car began production in 1992, but did not hit American shores until 1995 (many "1995" American E36 M3's are actually 1994's that were brought over from Europe). And when they did reach American shores, a detuned version of the engine was used. In 1996, a bigger 3.2 I6 was used to meet new, OBD-II, emissions standards. The newer 3.2 I6 proved to have more torque, but many BMW M enthusiasts will tell you that the 3.0 OBD-I's are much easier to modify because of their older ECU (engine control unit).