It is the fourth generation of the 3 Series compact executive cars produced by BMW, produced from 1998 when it succeeded the BMW E36 until it was replaced by the BMW E90 in 2005. The E46 was released in 1998 to worldwide markets (excluding the United States) in the sedan body style. In 1999, a coupé and touring body style became available to all markets, and the sedan was released in the United States. A convertible and hatchback body style was released in 2000, the latter only for Europe, Australia and New Zealand. The E46 experienced enormous success in all markets and was widely considered the performance benchmark of its class. BMW M GmbH produced a high performance variant of the E46 chassis, designated the M3. This version had a larger, more powerful engine, sportier suspension, a limited slip differential, and various aesthetic modifications. The M3 was released in 2001 and was available only in the coupé and convertible body style. It was offered with two transmissions; a standard 6-speed manual, or an optional sequential manual gearbox.
Car designs
The E46 was developed as a modern replacement for the ageing and cornered BMW E36 chassis. Based on the E36 body shell, the design team put an emphasis on improving aerodynamics and increasing the car's aggressive stance. Since the start of production the entire in-car entertainment system (Radio Function, Navigation System, Television and Telecommunications systems) is based on a very flexible automotive computer system. As a result, the E46 models can all be easily upgraded with the newest BMW technologies including BMW's Bluetooth System, the DVD based Navigation system, as well as BMW's CD changers that play MP3s. An emphasis was put on reducing unsprung weight and increasing structural rigidity rather than increasing power output: the highest displacement model at release, the E46 328, had only 3 horsepower more than the E36 328.
To counter this small power increase, the body shell of the E46 was claimed by BMW to be 70% more rigid than the E36's and aluminum suspension components were used increasingly in order to decrease unsprung weight. In tune with BMW's core values, the E46 was released with a front engine rear-wheel drive layout with 50/50 weight distribution. The sport package was available on all E46's, excluding cars with the Performance package and the M3. It consisted of a three spoke sports leather steering wheel and had improved grip over the standard "square" steering wheel. The car was also given sport seats, which provided better bolstering and support than the stock seats. They also had adjustable thigh supports and were available in manual or power. The sports package also offered 17-inch wheels standard, which came with staggered lower profile tires. Sport suspension was also given, which offered improved handling by way of firmer springs, a lower ride height, and tighter dampers.
The cold weather package has been available on all 3-series and M3 cars. It typically included pass-through ski bag, heated seats, headlight washers and fold down rear seats. The performance package was included various aesthetic changes over the regular 3 series, as well as functional and mechanical enhancements. It had M badges on each of its Style 135 wheels, with additional M badging on the multi-function steering wheel and atop the 6-speed short throw weighted shifter. In addition to the standard color options, the ZHP was available in the "Motorsport-only" color Imola Red. It received the "M-Tech II" bodykit standard, 18-inch staggered Style 135 wheels, high gloss anthracite window trim, and the coupe received clear turn signals (headlights, side-markers, and tail-lights) instead of the amber turn signals found on the standard 330Ci. The interior had also been modified with half cloth-half alcantara sports seats (optional upgrade to leather), an alcantara-wrapped sports steering wheel (switched to perforated leather in mid-2005), a shorter M-badged shift knob, anthracite colored cloth headliner, and aluminum "cubed" faux-carbon fiber interior trim (available in silver or black). 
The instrument gauge cluster was also modified with red needles and polished metal trim rings. In the performance department, the ZHP was equipped with the more aggressive BMW Performance camshafts and a DME tune to increase power from 225 hp (168 kW) to 235 hp (175 kW). The engine redline was also raised from 6,500 rpm to 6,800 rpm to further take advantage of the new power band and higher power output achieved by the new camshafts at higher RPMs. As a result of the higher redline, the nut that fastens the oil pump's sprocket came with threadlocker pre-applied from the factory to keep the nut from falling off. The car also received a shorter final drive ratio which allows for faster acceleration; 3.07 vs. 2.93 for manuals and 3.64 vs. 3.38 for the automatic. The ES trim level was included various safety features as standard equipment, such as anti-lock brakes, 6 airbags, dynamic stability control, and a factory installed alarm which were not common as standard features when the E46 was released. Comfort items such as heated and electric mirrors were also fitted standard.
Car designs
The E46 was developed as a modern replacement for the ageing and cornered BMW E36 chassis. Based on the E36 body shell, the design team put an emphasis on improving aerodynamics and increasing the car's aggressive stance. Since the start of production the entire in-car entertainment system (Radio Function, Navigation System, Television and Telecommunications systems) is based on a very flexible automotive computer system. As a result, the E46 models can all be easily upgraded with the newest BMW technologies including BMW's Bluetooth System, the DVD based Navigation system, as well as BMW's CD changers that play MP3s. An emphasis was put on reducing unsprung weight and increasing structural rigidity rather than increasing power output: the highest displacement model at release, the E46 328, had only 3 horsepower more than the E36 328.
To counter this small power increase, the body shell of the E46 was claimed by BMW to be 70% more rigid than the E36's and aluminum suspension components were used increasingly in order to decrease unsprung weight. In tune with BMW's core values, the E46 was released with a front engine rear-wheel drive layout with 50/50 weight distribution. The sport package was available on all E46's, excluding cars with the Performance package and the M3. It consisted of a three spoke sports leather steering wheel and had improved grip over the standard "square" steering wheel. The car was also given sport seats, which provided better bolstering and support than the stock seats. They also had adjustable thigh supports and were available in manual or power. The sports package also offered 17-inch wheels standard, which came with staggered lower profile tires. Sport suspension was also given, which offered improved handling by way of firmer springs, a lower ride height, and tighter dampers.
The cold weather package has been available on all 3-series and M3 cars. It typically included pass-through ski bag, heated seats, headlight washers and fold down rear seats. The performance package was included various aesthetic changes over the regular 3 series, as well as functional and mechanical enhancements. It had M badges on each of its Style 135 wheels, with additional M badging on the multi-function steering wheel and atop the 6-speed short throw weighted shifter. In addition to the standard color options, the ZHP was available in the "Motorsport-only" color Imola Red. It received the "M-Tech II" bodykit standard, 18-inch staggered Style 135 wheels, high gloss anthracite window trim, and the coupe received clear turn signals (headlights, side-markers, and tail-lights) instead of the amber turn signals found on the standard 330Ci. The interior had also been modified with half cloth-half alcantara sports seats (optional upgrade to leather), an alcantara-wrapped sports steering wheel (switched to perforated leather in mid-2005), a shorter M-badged shift knob, anthracite colored cloth headliner, and aluminum "cubed" faux-carbon fiber interior trim (available in silver or black). 
The instrument gauge cluster was also modified with red needles and polished metal trim rings. In the performance department, the ZHP was equipped with the more aggressive BMW Performance camshafts and a DME tune to increase power from 225 hp (168 kW) to 235 hp (175 kW). The engine redline was also raised from 6,500 rpm to 6,800 rpm to further take advantage of the new power band and higher power output achieved by the new camshafts at higher RPMs. As a result of the higher redline, the nut that fastens the oil pump's sprocket came with threadlocker pre-applied from the factory to keep the nut from falling off. The car also received a shorter final drive ratio which allows for faster acceleration; 3.07 vs. 2.93 for manuals and 3.64 vs. 3.38 for the automatic. The ES trim level was included various safety features as standard equipment, such as anti-lock brakes, 6 airbags, dynamic stability control, and a factory installed alarm which were not common as standard features when the E46 was released. Comfort items such as heated and electric mirrors were also fitted standard.
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