BMW Reveals The Exclusive M3 E36 Compact

It weighed 331 lbs less than the M3 Coupe, but had the same power.

BMW Classic digs deep into the archives to reveal the BMW 3 Series Compact of the E36 generation. Even the hosts get to see the M3 Hatchback, which is the true star of the show.

The 318ti was the only 3 Series that the United States got. It was a success in Europe but not as well in America. The small hatchback segment has never been a popular one in America. Even by mid-1990s standards the 138-horsepower (103 kilowatts) output was not impressive.
BMW Reveals The Exclusive M3 E36 CompactBMW addressed the European shortage of power by offering the 323ti equipped with a 2.5-liter Inline-Six producing 168 horsepower (125 kW) Unfortunately, this model was never made available in America.

M division saw performance potential in a three-door hatch with a larger engine, so the team built one in 1996 as a proof of concept. The S50B32 3.2-liter Inline-Six engine was under the hood. It had BMW’s double VANOS variable timing system for the intake and exhaust. This mill produced 316 horsepower (236kilowatts, or 321 metric horses).
BMW Reveals The Exclusive M3 E36 Compact

The M team also added single-piece carbon-fiber sports seats to the interior, in addition to the additional power. Alcantara was used to cover the steering wheel rim, gearshift and handbrake. The rear had quad exhaust pipes, each with two outlets.

BMW Reveals The Exclusive M3 E36 Compact

It was lighter than the E36 M3 coupe at 331 pounds (150 kg). The vehicle was also 9.0 inches (23 cm) shorter than the two door, which made it more agile by placing less weight behind the rear axle.

BMW executives never gave the M3 Compact the green light to be produced. It’s still nice to see that BMW is preserving the prototype and not destroying it in order to show what could be.