The E39 M5 debuted at the Geneva Motor Show. The car was powered by a 4.9 litre V8 engine developing 394 bhp. The top speed was limited at 155 mph whilst the 0-62 mph time was 4.9 seconds. With the electronic limiter switched off the M5 could reach 187 mph.
BMW originally planned not to develop an M5 variant of the E39, believing that the 540i which developed 286 bhp was fast enough. However, following the release of the Mercerdes-Benz E55, which had an output of 350 bhp, BMW decided to respond and introduce the next generation of the M5. Once released, the M5 became the fastest sedan in the world.
The E39 M5 introduced a range of technical innovations to the M range. These include DVD satellite navigation with a 6.5 inch screen, front and rear parking distance sensors, and servotronic speed sensitive power assisted steering which had two resistance settings depending on the speed the car was travelling.
Unlike its previous versions of the M5, the E39 version was not hand built. Instead it was mass produced at BMW's Dingolfind factory where all other variants of the E39 5-Series were produced.
Production of the BMW E39 M5 finally ended in 2003, by which time 20,482 examples had been created.