The E46 Is the BMW M3 Formula Perfected

bmw e46 m3 track test photos

DW Burnett

This is the zenith for many, the tippy top of M3 mountain. Because the third-gen M3 (code name: E46) is one of the last BMWs that feels old-school Bimmer where it matters. A naturally aspirated inline-six lives under the hood. There’s a hydraulic steering rack, and just-right proportions that act as the missing link between the E36s squared-off charm and the next M3’s bubble butt.

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It’s very pretty.

The E46 marked a turning point when the M3 (and BMWs at large) transitioned from “chassis” cars, that relished handling balance above all else, to “engine” cars with enough grunt to light off tire smoke from corner exit through the next county.

That’s thanks to the S54 engine, a dual overhead cam, 24-valve inline-six masterpiece that puts down 333 horses from just 3.2 liters. The mill is an ultimate incarnation of the BMW straight-six – one of the greatest naturally aspirated engines ever built. You’d be tempted to call the engine joyous, because it brings giddy joy, but this is a menacing, angry lump of metal. A silky idle begets a throaty grumble flooding in the midrange. At full tilt, the S54 breaks into full chainsaw sonata until it bangs against its 7900 rpm redline.

bmw e46 m3 track test photos

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DW Burnett

There’s not huge torque here – just 262 lb-ft. at 4900 rpm – so you slam the throttle wide open and chase the top half inch of the tach. If that classic BMW soundtrack is what you’re after, there’s no better M3. Hell, there may be no better BMW.

At its launch we clocked the M3 from zero to 60 mph at 4.8 seconds. It sprinted the quarter mile in 13.5 seconds. With a curb weight of 3450 lbs, you couldn’t call it a featherweight, but there’s plenty of power to motivate the poundage, the chassis never feels overwhelmed. Plus the whole car seems to resonate with an angry, growling energy brought on by the S54.

In hindsight, the S54 feels mostly responsible for the S52’s pedestrian reputation in America – we didn’t understand how many horses our E36 was missing until the E46 brought the heat. And while the S54 brings more ferocity to this generation, the E46’s chassis isn’t any less usable. It does feel a shade woodier and less compliant on the road than an E30 or E36, so spend more time on tracks.

bmw e46 m3 track test photos

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DW Burnett

The E46’s interior mostly returned to form in materials quality (just don’t ask the owners of E46s about the clips holding their doors together). This M3 moved back to a more elegant three-spoke steering wheel. Brushed-aluminum trim surrounds the shifter and door handles and there’s swaths of the stuff strung across the dash like tinsel on a tree. It’s nice to touch, but feels dated.

e46 m3 orignal spec sheets

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Our original performance testing data on the E46 M3 from the February 2001 issue of Road & Track.

Tim Barker

The cabin maintains the E36’s lowdown driving position, but reveals far less of the E46’s snout. The car is equipped with another great pair of seats. They’re pliant, roomy enough for your hindquarters, but equipped again with bulging lumbar pads to keep your shoulders in check. Pedal placement feels perfect here, even if the wheel well offers less usable foot room than either the E30 or E36 (something to consider for those of us with size 11-or-larger feet).

There’s a tailored quality to this interior, enough contrast between material tones to keep your interest, but tempered by a businesslike layout. It’s tight, but not suffocating. “Focused,” maybe. Because the E46 preserved that economy of form and motion that each previous M3’s interior brought to the table.

bmw e46 m3 track test photos

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DW Burnett

That’s of use here, at Mid-Ohio, especially through the track’s undulating middle section, which pitches the car’s nose like a sine wave as you snake through. The E46 danced on its tippy toes through Turn 5 – neutral as Switzerland – even as the corner crested and chucked the car toward its nervous, downhill corner exit. The E46 simply stuck in everywhere, with 255/40ZR18 rubber out back that gripped Mid-O’s tarmac far tighter than the previous M3s. That increased grip allows less play than previous M3s, but chasing the S54’s redline is its own brand of intoxication. And listening to that straight-six note doppler off the countryside is pure bliss.

The price of entry for these Bavarian gems is rising. You’ll pay a premium for a well-kept car with six speeds and three pedals. The clunky Sequential Manual Gearbox (SMG) cars will suck up your time or burn all your money. Keep an eye out for torn or cracked rear subframes, or budget for a weld-in reinforcement kit to solve the issue. S54s are known to eat rod bearings with heavy use. Oil analysis and/or a preventative fix takes care of the issue. With those key fixes in place, you’re left with perhaps the platonic M3; That raging Bimmer six hidden behind a finely tailored suit of armor.

Is this the M3’s zenith? Well, it’d be hard argue against the E46.

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DW Burnett

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Kyle Kinard

Senior Editor

The only member of staff to flip a grain truck on its roof, Kyle Kinard is R&T’s senior editor and resident malcontent. He lives near Seattle and enjoys the rain. His column, Kinardi Line, runs when it runs.