Between 1998 and 2002 the BMW M division produced the Z3 based BMW M Roadster and M Coupe. The coupe is 2.7 times stiffer than the roadster affording it superior handling and higher residuals. Both models borrowed the engine from the BMW M3 (from 1998-2000 the 3.2 litre 321 bhp unit from the E36 M3 was used, and between 2001-2002 the 3.2 litre 325 bhp unit from the E46 M3 was used). Both versions also included a quad exhaust similar to that observed on the M3.
Approximately 15,000 M Roadsters were produced between 1998 and 2002, compared with approximately 6,300 M Coupes. Both models were produced at BMW's Spartanburg facility, South Carolina. However, the 3.2 litre M engine was imported from Germany.
The BMW M Coupe has been affectionately (!?) nicknamed the 'Bread Van', 'Shoe', 'Clown Shoe', 'Boot', or 'Shooting Brake' by enthusiastic owners. The coupe possesses superior torsional rigidity to the roadster.
During the vehicle's development, chief engineer Burkhard Göschel faced stiff resistance from the board of BMW AG who did not consider the vehicle cost effective. As a result the M Coupe shares many of the same components as the M Roadster: the interior is interchangeable between the two models, and all the body panels from the A-pillar forwards are also interchangeable.