E46, Fourth generation, 1998-2006

E46, Fourth generation, 1998-2006

The E46 is the fourth generation of BMW's 3 Series entry-level luxury car / compact executive car. The saloon was introduced in 1998 and replaced the E36 saloon the same year. The initial inline-six engines available were the 2.5 L 323 and 2.8 L 328 (the 323 badge did not match engine displacement but it was numbered as such to increase the spread between both models). The touring and coupé models appeared in 1999 with BMW's newly designed steptronic manumatic transmission, and the convertible and M3 later in 2000. The E46 Compact, a three-door hatchback, was revealed in 2001 to be sold in European and Australian markets. xDrive all-wheel drive was introduced as an option in 2001 for left hand drive markets only due to clashes between the running gear and steering rack. in 2000, the E46 lineup received an engine boost when the new M54 engines appeared for Model Year 2001 cars replacing the M52TU engines; with the new 3.0 L 330 replacing the 328, and the 2.5 L 325 replaced the 323. Additionally a 2.2 L engine was introduced in the 320i. Outside of the engine and exhaust upgrades, there were few cosmetic changes, the most noticeable being the 330 receiving silver accents on the front fascia.Also in 2000, the E46 lineup expanded to include the new (model year) 2001 M3 Coupe. The M3 only came in a coupe and convertible (model year 2002) platform, with either a six-speed manual or SMG. Unlike its predecessor, the E46 M3 shared very few parts with the standard 3 series. The exteriors of the two cars only shared the doors, roof, and boot. The exterior of the M3 had wider bumpers and "M styled" bumpers, side skirts, mirrors, a protruding bonnet, spoiler, and the new tradition of M marked grills on the front bumpers and four exhaust pipes. The interior of the M3 was accented with an M steering wheel, seats, rear view mirror, and instrument cluster.The first major overhaul occurred when the E46 saloon underwent a facelift from September 2001, which included re-designed headlights, new bumpers and a stiffer chassis. Also, the 316i and 318i models received new, more powerful engines. Then from March 2003 the coupe and convertible had a facelift which included new headlights, new front wings and bumpers, new selections in exterior colour, and redesigned sidemarker lights and LED tail lights. The M3s got a much more mild facelift that same year, with the inclusion of the updated boot and LED tail lights from the coupe/convertible.Despite being introduced last, the E46 compact was the first to be replaced when the 1 Series was launched in September 2004. In mid-2005 the E46 saloons were phased out with the introduction of the new E90 saloons. The E46 touring was also replaced later that year with E91. The E46 remained in production as coupé, convertible and M3 until the E92 coupé and E93 convertible was revealed in late 2006. The new M3 coupé concept was later unveiled in March 2007 during Geneva Motor Show.The E46 experienced enormous success in all markets and was widely considered the performance benchmark of its class. The record year for the E46 was 2002, when 561,249 vehicles were sold worldwide.As a credit to the E46 series, it was chosen for Car and Driver Magazine's "10 Best Cars" every year of its production. See Car and Driver Ten Best.