The differential gearing on the S54 M Coupes was increased from 3.23 to 3.15 to further handicap performance while the E46 M3 paired a 3.63 final drive to same powertrain. The S54 engine was detuned to 315hp despite a shorter better flowing exhaust and the car was denied the Getrag S6S-420G 6 speed transmission despite the chassis being built with the necessary mounting points. Sales were slow as BMW provided almost zero marketing budget to prevent direct sales competition from the more profitable E46 M3. and cosmetics was approved for production at the same time. The Z3 coupé, which combines the M coupe's body with the standard Z3 drivetrain, chassis. To achieve this goal, majority of the body panels had to be shared with the M roadster, thus the doors and everything from the A-pillar forward are interchangeable between the coupé and roadster, as are most interior parts. The development team had a hard time convincing the Board of Directors to approve the model for production, but it was eventually given the green light as long as it remained cost-effective to produce. ![]() The M Coupé E36/8, manufactured from 1998 until 2002, was developed under the leadership of engineer Burkhard Göschel with the intention of adding increased torsional and structural rigidity to the Z3 roadster's chassis. The M Roadster is electronically limited to a top speed of 250 km/h (155 mph). In the 6 years from 1997 to 2002, 15,322 M Roadsters were produced. The standard Z3 models received a facelift in 1999. Additional external differences compared to the standard Z3 models included front and rear bumpers, gills, quad exhaust, trunk, and mirrors. The most significant cosmetic difference between the M-Roadster, including the M-Coupe, is the substantially flared rear quarter-panels ("fender flares") and the correspondingly offset rear wheels. The M-Roadster E36/7 was introduced in 1997 as the high performance version of the BMW Z3.
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